Shell Secures Vietnam's First Long-Term LNG Supply Contract
Shell has been awarded a landmark LNG supply contract by Petrovietnam Gas, marking Vietnam's shift from spot market reliance to long-term agreements. This five-year deal will see Shell deliver 400,000 metric tons annually from 2027 to 2031, supporting Vietnam's burgeoning gas-fired power infrastructure.
Insights:
In a significant development for Vietnam's energy sector, Shell plc has secured the country's first-ever long-term liquefied natural gas (LNG) supply contract. Awarded by Petrovietnam Gas, the agreement commits Shell to deliver approximately 400,000 metric tons of LNG annually over a five-year period from 2027 to 2031. This contract marks a pivotal shift in Vietnam's energy procurement strategy, transitioning from a reliance on spot market purchases to establishing a predictable, contracted LNG supply.
The LNG will be supplied on a delivered ex-ship (DES) basis to the Thi Vai LNG import terminal, operated by Petrovietnam Gas in southern Vietnam. The terminal, which opened in 2023, is located near Ho Chi Minh City and plays a crucial role in supporting the country's energy infrastructure. This transition to long-term contracts coincides with the recent commencement of commercial operations at two gas-fired power plants in mid-December 2025.
