KEY POINTS
- Petrovietnam Gas is sounding out suppliers for a five-year LNG contract, a document reviewed by Reuters shows.
- The June request seeks 250,000 to 450,000 tons for the Thi Vai Terminal, with deliveries from January 2027.
- It would be Vietnam’s second term deal after Shell’s January 2026 contract to supply about 400,000 tons a year.
State-controlled Petrovietnam Gas is sounding out suppliers for a possible tender to buy liquefied natural gas under a five-year contract, according to a document reviewed by Reuters.
If it goes ahead, the deal would become Vietnam’s second LNG term contract after an agreement with Shell earlier this year, as the Southeast Asian manufacturing hub builds an LNG industry from scratch to meet rising energy demand.
What the market sounding covers
According to the document, PV GAS sent the request to potential suppliers in June under a market sounding exercise. It seeks 250,000 to 450,000 metric tons for the Thi Vai Terminal, with delivery starting in January 2027 or later, though the company has not yet announced a tender.
Moreover, the move follows Vietnam’s first term deal, which PV GAS awarded to Shell in January 2026. Under that five-year agreement, Shell will deliver about 400,000 tons a year from 2027 to 2031. Still, the company continues to rely on spot cargoes for its two southern terminals in the meantime, so a second term contract would give it steadier supply.
Trade and energy pressures shape the push
Vietnam finalised the Shell deal while it negotiated with the United States to shrink its large trade surplus, partly by buying American LNG. However, Hanoi and Washington have not announced any term deal with US firms, and talks continue even as Vietnam faces higher US tariffs than many of its peers. Therefore, further LNG purchases could still feature in any eventual trade agreement.
Furthermore, the country wants to cut its reliance on coal and lower its carbon emissions, which sharpens its appetite for gas. Consequently, PV GAS is expanding the Thi Vai Terminal from 1 million to 3 million tons a year, where it supplies two power plants with a combined 1.5 gigawatts. The other southern terminal, Cai Mep, run by AG&P LNG, can handle 3 million tons a year, which gives Vietnam room to import far more gas.
