en.Wedoany.com Reported - PV Gas said in a statement on Monday that it has signed a fixed-term liquefied natural gas (LNG) supply agreement with Shell Eastern Trading.

Under the agreement, Shell will deliver LNG to the Thi Vai LNG terminal operated by PV Gas from 2027 to 2031. PV Gas noted that the contract is the result of a tender held last year, in which Shell was selected as the preferred supplier.

In January, PV Gas stated that Shell Eastern Trading would supply 20,700,000 million British thermal units (mmBtu) of LNG annually on a delivered ex-ship (DES) basis, equivalent to approximately 400,000 tons. PV Gas said this marks the first time Vietnam has signed a fixed-term LNG supply contract.

PV Gas stated that with the signing of this contract, it has become the first Vietnamese company eligible to participate in negotiations and sign a fixed-term LNG purchase and sale agreement in accordance with international LNG market standards and practices. This is not only a significant milestone in the development of Vietnam's domestic LNG market but also helps implement the government's policy of diversifying and stabilizing long-term energy supply, contributing positively to ensuring national energy security and meeting fuel demand for power generation and economic development.

PV Gas and Shell have a prior cooperation foundation. In 2023, PV Gas received commissioning LNG cargo from Shell at Thi Vai. Earlier this year, PV Gas also increased the regasification capacity of the Thi Vai LNG import terminal. The company said test results showed the system operated safely and stably at 288 tons per hour, exceeding the initial design capacity of 171 tons per hour, equivalent to approximately 9.5 million standard cubic meters per day.

The Thi Vai LNG terminal, commissioned in 2023, is Vietnam's first LNG import facility, comprising a 180,000-cubic-meter LNG storage 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 commenced commercial operations at the LNG power plant in December last year; these two plants are Vietnam's first LNG power plants, with a total installed capacity of 1.6 gigawatts.