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PV Gas announced the signing of the agreement with Shell Eastern Trading in a statement on Monday.
Shell will deliver the LNG supplies to the PV Gas-operated Thi Vai LNG terminal from 2027 until 2031.
PV Gas noted that the contract signing follows a tender last year under which Shell was selected as the preferred supplier.
In January this year, PV Gas said that Shell Eastern Trading will supply 20,700,000 British thermal units (mmBtu) of LNG, or approximately 400,000 mt, per annum on a delivered ex-ship (DES) basis.
PV Gas said this marks the first time a fixed-term LNG contract has been signed to supply Vietnam.
With the signing of this contract, PV Gas has become the first Vietnamese company to meet the conditions to participate in negotiations and to sign a fixed-term LNG purchase and sale contract in accordance with international LNG market standards and practices, the company noted.
Moreover, this is not only a “significant” milestone in the development of the domestic LNG market but also contributes to the realization of the government’s policy on diversifying stable, long-term energy supplies, helping to ensure national energy security and meet fuel demand for power generation and economic development, PV Gas said.
Thi Vai LNG
This is not the first time Shell will deliver LNG to PV Gas.
In 2023, PV Gas received the commissioning LNG cargo from Shell at its Thi Vai facility.
Earlier this year, PV Gas increased regasification capacity at its Thi Vai LNG import terminal
The company said the test results confirmed that the system maintains safe and stable operations at 288 tons per hour, exceeding the initial design capacity of 171 tons per hour and equivalent to approximately 9.5 million standard cubic meters per day.
Launched in 2023, Vietnam’s first LNG import facility comprises one 180,000-cbm LNG tank, a jetty, and a regasification area.
The facility supplies natural gas to PetoVietnam Power’s Nhon Trach 3 and 4 LNG power plants.
PV Power launched commercial operations at its LNG power plants in December last year.
Vietnam’s first LNG power plants have a total capacity of 1.6 GW.