Vietnam Sells Gas Buyers on New Term Deal After Shell Pact

Petrovietnam Gas is seeking to procure liquefied natural gas (LNG) under a five-year contract, according to a document reviewed by Reuters. This would be Vietnam's second term contract after a deal with Shell earlier this year. The request sent in June to potential suppliers for the supply of 250,000-450,000 metric tons for the Thi Vai Terminal is for delivery starting in January 2027 or later.

The document shows that Petrovietnam Gas has already awarded its first term contract to Shell in January 2026. The British energy giant will deliver the super-chilled fuel to Vietnam from 2027 to 2031 under a five-year supply deal for about 400,000 tonnes a year. This deal was finalized as part of Vietnam's negotiations with the United States to reduce its large trade surplus with Washington.

Both Thi Vai Terminal and Cai Mep Terminal have been supplied under spot contracts, but Petrovietnam Gas is looking to secure term contracts to meet growing energy demand in the country. The expansion of Thi Vai Terminal from one million tonnes a year to three million tonnes per year will help supply two power plants with a combined capacity of 1.5 gigawatts.