Shell Secures Petrovietnam Gas' First Long-Term LNG Contract

Shell plc SHEL has strengthened its presence in Vietnam’s LNG market by securing Petrovietnam Gas’ first-ever long-term supply contract. The five-year agreement reflects Vietnam’s shift away from sole reliance on spot purchases as it expands gas infrastructure and power generation capacity.First Contractual LNG Deal Marks Strategic ShiftUnder the agreement, Shell will supply around 400,000 metric tons of LNG annually from 2027 to 2031. This is Petrovietnam Gas’ first long-term supply contract since Vietnam began importing LNG in 2023, underscoring a transition toward more stable, long-term procurement.The first contract entered in 2023 was for test running PetroVietnam Gas' LNG terminal located in the southern province of Ba Ria Vung Tau. At that time, Vietnam had plans to build a fleet of LNG-fired power plants totaling 22.4 gigawatts by 2030, which would make up about 14.9% of the nation’s overall power generation capacity.Supply to Thi Vai TerminalThe LNG will be delivered on a delivered ex-ship basis to the Thi Vai LNG terminal in southern Vietnam, near Ho Chi Minh City. Operated by Petrovietnam Gas, the terminal primarily supplies two gas-fired power plants that entered commercial operation in mid-December.From Spot Imports to Long-Term SecuritySo far, Vietnam has relied solely on spot LNG cargoes, importing about 0.5 million tons in 2025, according to Kpler data. The tender for term supply, issued in August, reflects growing demand and the need for a predictable fuel supply as gas-fired power plays a larger role in Vietnam’s energy mix.SHEL’s Zacks Rank & Key PicksLondon-based Shell is one of the primary oil supermajors — a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).Investors interested in the energy sector may consider some top-ranked stocks like Cenovus Energy Inc. CVE, Natural Gas Services Group, Inc. NGS and TechnipFMC plc FTI. While Cenovus Energy and Natural Gas Services currently sport a Zacks Rank #1 (Strong Buy) each, TechnipFMC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. The company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. The Zacks Consensus Estimate for CVE’s 2025 earnings indicates 26.2% year-over-year growth.Natural Gas Services manufactures, fabricates, sells, rents and services natural gas compressors that enhance the production of natural gas wells. The Zacks Consensus Estimate for NGS’ 2025 earnings indicates 13.3% year-over-year growth.Newcastle & Houston-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2025 earnings indicates 24.7% year-over-year growth.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TechnipFMC plc (FTI): Free Stock Analysis Report Cenovus Energy Inc (CVE): Free Stock Analysis Report Natural Gas Services Group, Inc. (NGS): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks