Core Insights - Shell plc has secured its first long-term LNG supply contract with Petrovietnam Gas, marking a significant step in Vietnam's LNG market and indicating a shift from spot purchases to long-term agreements [1][9]. Group 1: Contract Details - The five-year agreement will see Shell supply approximately 400,000 metric tons of LNG annually from 2027 to 2031 [2][9]. - This contract represents Petrovietnam Gas' first long-term supply agreement since the country began importing LNG in 2023, highlighting a strategic transition towards stable procurement [2][9]. Group 2: Infrastructure and Capacity Expansion - The LNG will be delivered to the Thi Vai LNG terminal, which is operated by Petrovietnam Gas and primarily serves two gas-fired power plants that commenced operations in mid-December [4][9]. - Vietnam plans to develop a fleet of LNG-fired power plants totaling 22.4 gigawatts by 2030, which will account for about 14.9% of the nation's overall power generation capacity [3]. Group 3: Market Context - Prior to this agreement, Vietnam relied exclusively on spot LNG imports, with approximately 0.5 million tons imported in 2025, reflecting the growing demand for a reliable fuel supply as gas-fired power becomes increasingly important in the energy mix [5].