Document shows that Vietnam is considering a second LNG contract term after the Shell deal

According to a document that was reviewed by us, the state-controlled Petrovietnam Gas has begun contacting potential suppliers to secure a five-year contract to purchase liquefied gas.

It would be Vietnam's second contract, after a deal with Shell in the first half of this year. The Southeast Asian manufacturing hub is building an LNG industry to meet its growing energy needs.

Documents show that the request for a "market-sounding exercise" sent to potential suppliers in June is for a?supply between 250,000 and 450,000 metric tonnes for the Thi Vai terminal, with deliveries starting as early as January 2027. The tender has not yet been announced.

Shell was awarded the first PV GAS contract until now in January 2026. The British energy giant has agreed to 'deliver super-chilled gas to Vietnam between 2027 and 2031 under a five-year deal.

Vietnam has been negotiating with the United States to reduce the large surplus of trade with Washington. This includes the purchase by Vietnam of LNG from U.S. companies.

Hanoi and Washington are still negotiating a trade agreement, but no term deal has been announced. Meanwhile, Vietnam is facing higher U.S. import tariffs than many of its peers.

Vietnam is trying to reduce its dependence on coal and lower carbon emissions. It has two LNG terminals in the south that were supplied through'spot contracts.

Thi Vai terminal, run by PV GAS?can handle a million tons of gas per year. It is currently being expanded to a 3 million-ton capacity. The terminal supplies two power plants with a combined capacity of 1,5 gigawatts.

The Cai Mep terminal, owned by AG&P LNG has a 3 million ton capacity per year. (Reporting and editing by Barbara Lewis; Additional reporting by Khanh Vu)

(source: Reuters)