Vietnam seeks spot LNG cargoes for delivery from April onward

Vietnamese oil and gas major PetroVietnam Gas, or PV Gas, issued a tender Feb. 26, seeking 1-2 spot LNG cargoes on a DES basis to the Thi Vai LNG terminal.

The delivery window of the first cargo is April 1-20, while the delivery window for the second cargo will be determined later, according to the tender document.

"Delivery window for the second cargo is still pending final confirmation, but it will be around July-August," a market source with knowledge of the matter said.

The tender is on an outright price and Brent basis, with preference to outright price, according to market sources.

PV Gas expects to close the tender Feb. 29 at 9:00 am Vietnam time.

This is PV Gas's first spot LNG tender since the official inauguration of the country's first LNG terminal on Oct. 29. The Thi Vai LNG terminal received the commissioning cargo from Shell on July 10, 2023, following a tender that was issued in April 2023.

The terminal currently offers a regasification capacity of 1 million mt/year under phase 1. There is a plan to expand the capacity of the Thi Vai LNG terminal to 3 million mt/year over 2026-30.

Another project, the Hai Linh LNG terminal, owned by local oil company Hai Linh Co Ltd, which was scheduled to complete construction in 2023, was heard to have delayed the plan due to tank issues, according to Vietnam-based market sources. Hai Linh LNG terminal will have a capacity of 3.4 million mt/year of LNG upon completion. The company itself wasn't immediately available for comment on the matter.

Platts, part of S&P Global Commodity Insights, assessed the April JKM at $7.981/MMBtu Feb. 26 and the February SEAM at 18.1 cents/MMBtu discount to the April JKM.