Regional LNG: PV GAS signs Vietnam's first long-term LNG supply deal with Shell

By Romel S. Gurky

Vietnam's Petrovietnam Gas Joint Stock Corporation (PV GAS) has signed the country's first long-term liquefied natural gas (LNG) supply agreement with Shell plc, securing LNG deliveries for 2027-2031 as the country seeks to diversify fuel supplies and strengthen energy security.

The agreement was signed with Shell Eastern Trading (Pte) Ltd, a wholly owned subsidiary of Shell, following an international tender completed in late 2025, PV GAS said in a statement on Monday.

The company said the contract marks the first term LNG sale and purchase agreement (SPA) signed specifically to supply the Vietnamese market.

PV GAS said the procurement process was conducted through an open international tender that attracted several global LNG suppliers. The company said it had become the first Vietnamese firm to negotiate and execute a long-term LNG SPA in line with international LNG market standards and practices.

The agreement supports Vietnam's strategy of securing stable, long-term energy supplies to meet rising demand for electricity generation and economic growth, the company said.

Shell has been a key supplier to Vietnam's nascent LNG sector. In July 2023, the company delivered Vietnam's first LNG cargo to commission PV GAS's Thi Vai LNG terminal, marking the country's entry into LNG imports.

According to PV GAS, the new contract strengthens its integration into regional and global LNG markets while supporting plans to diversify supply sources and expand Vietnam's LNG industry.

PV GAS operates Vietnam's LNG import infrastructure, including the Thi Vai LNG terminal, as the country increases LNG imports to supplement domestic natural gas production and support its growing power sector.

Editing by Reiner Simanjuntak