State-backed PetroVietnam Gas ( PV Gas ) has signed a breakthrough five-year supply contract with global energy major Shell, marking the first-ever mid-term liquefied natural gas purchase agreement secured for Vietnam.

Under the newly finalized contract, Shell Eastern Trading will supply around 400,000 tonnes of LNG per annum to PV Gas on a delivered ex-ship ( DES ) basis for the period spanning from 2027 through 2031. The super-chilled fuel will be discharged at the inaugural 1-million-tonne-per-annum Thi Vai LNG import terminal, located in the area of Ba Ria-Vung Tau, a critical energy gateway for Ho Chi Minh City, the country’s southern economic hub.

The landmark deal, executed under the close guidance of state-run oil and gas group Petrovietnam, was finalized under PV Gas’s competitive Term Procurement Package No. 1.

PV Gas says Shell Eastern LNG was selected through an open, transparent, and highly competitive international bidding process aligned with global industry standards. The procurement package attracted strong participation from reputable global energy enterprises, including top-tier international LNG corporations.

The competitive outcome not only underscores the growing attractiveness of Vietnam’s LNG market but also reflects PV Gas’s rising credibility, capacity, and standing within the international LNG supply chain.

The agreement represents a fundamental structural evolution for Vietnam’s energy sector, shifting procurement away from ad hoc, volatile spot-market sourcing towards long-term, predictable supply baselines. The mid-term framework arrives amid a rigorous push by the corporation to sustain Vietnam’s fast-growing industrial manufacturing grid.

Vietnam has to date not been able to produce LNG itself, forcing it to rely entirely on imports while actively diversifying its immediate sources. Beyond securing energy security, increasing imports of American products, ranging from US-sourced LNG shipments to major aerospace deals like Boeing aircraft, carries a broader strategic benefit. It helps Vietnam proactively balance the bilateral trade surplus and better navigate potential trade pressures, including Trump tariffs.

According to official data, PV Gas handled a massive influx of fuel over the first half of 2026, importing approximately 354,000 tonnes of LNG via spot transactions, including a 73,000-tonne cargo from Canada aboard the Methane Mickie Harper ship and a 15,000-tonne delivery from Australia. Additionally, the corporation secured a 45,000-tonne liquefied petroleum gas ( LPG ) shipment from the US via the Clipper Wilma vessel to bolster national industrial reserves.

While these single spot cargoes successfully insulated the domestic grid from supply shortfalls during peak industrial periods, they exposed downstream networks to global pricing volatility. Securing the inaugural term contract with Shell establishes a critical commercial and regulatory blueprint as Vietnam builds out its gas-to-power infrastructure under its National Power Development Plan 8, which prioritizes natural gas as a bridge away from coal reliance and seeks to promote renewables like solar and wind power.