Petrovietnam Gas awards first multi‑year LNG deal to Shell

Petrovietnam Gas awards first multi‑year LNG deal to Shell

PV Gas has signed its first multi‑year LNG supply contract, a five‑year agreement with Shell delivering about 400,000 tonnes per year to the Thi Vai terminal from 2027 through 2031.

Photo: Shutterstock

PV Gas' earlier term supply tender sought 20.7 million British thermal units (mmBtu) of LNGfor shipments covering 2027-2031, a quantity that market reporting equates to about 400,000 tonnes per year. The tender specified DES delivery to Thi Vai and closed on September 24.

The contracted volume equals roughly 400,000 tonnes per annum, or about 40 per cent of Thi Vai's current one million tonne per annum (mtpa) throughput capacity, highlighting the terminal's central role in anchoring Vietnam's nascent long‑term import profile.

Thi Vai, launched in 2023 and operated by PV Gas, is Vietnam's first LNG import facility. Its on‑site assets include a single 180,000‑cubic‑metre storage tank, a jetty, and regasification infrastructure geared primarily to supply nearby gas‑fired power plants. The terminal received the country's initial LNG cargoes when imports began in 2023, and PV Gas has signalled plans to expand throughput to 3 mtpa to accommodate larger and more regular long‑term deliveries.

The Shell award dovetails with PV Gas' expanding role as a long‑term fuel supplier within the Petrovietnam group. PV Gas and Petrovietnam Power have already formalised supply arrangements for the Nhon Trach 3 and 4 LNG‑fired plants; Those company announcements and market reports describe a 25‑year contract covering commercial operation from 2025 and cite an initial commitment of about 530 million cubic metres per year for the first five years for the two Nhon Trach units.

Such long tensors aim to secure fuel availability for baseload and mid‑merit plants, and to underpin project financing for new capacity.

As reported by prismedia.ai, Vietnam's LNG import volumes remain modest but are growing. PV Gas figures and market analytics show approximately 400 million cubic metres of LNG imported in 2024, with 245 million cubic meters delivered in the first half of 2025 and a full‑year target of nearly 500 million cubic metres for 2025. Vessel data recorded five cargoes in 2024 and five in 2025, underscoring the rapid development phase of the market.

The shift to term contracting has immediate market implications. Securing roughly 0.4 mtpa on a five‑year basis reduces exposure to spot price volatility for PV Gas and its downstream customers, supports merchant and utility financing, and signals to suppliers the emergence of more stable demand in Southeast Asia.

Taken together, the deal is a milestone in Vietnam's integration into global LNG markets, shifting the country further from ad hoc spot sourcing towards the predictable supply structures needed to support its expanding gas‑fired power fleet. The transaction and PV Gas' expansion plans will be closely watched by investors and locked in as Vietnam scales its gas infrastructure.

VIR