Shell Signs LNG Supply Agreement with Vietnam's PV Gas Amid Stock Recovery
Shell's stock increased by approximately 3% after signing a long-term LNG supply agreement with Vietnam's PV Gas, committing to deliver 400,000 tons of LNG annually from 2027 to 2031. This contract, PV Gas's first long-term procurement, signifies a shift away from the volatile spot market and strengthens Shell's position in the Asian LNG sector. Despite this positive development, Shell faces challenges in its Chemicals & Products division, with forecasts indicating significant losses in Q4, leading to investor concerns ahead of upcoming quarterly results.
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Shell's stock rose approximately 3% following a strategic long-term LNG supply agreement with Vietnam's state gas supplier, PV Gas. From 2027 to 2031, Shell will supply 400,000 tons of LNG annually to the Thi Vai Terminal.
This contract marks PV Gas's first long-term procurement agreement, moving away from the volatile spot market. Despite the deal's modest volume in Shell's global portfolio, it reinforces the company's dominance in the Asian LNG market.
However, Shell's recent quarterly update revealed significant challenges, particularly in its Chemicals & Products division, forecasting a substantial loss in Q4 and lower trading results. Investors reacted to the week's volatility, with shares dropping 7% before the recovery. Upcoming quarterly results on February 5, 2026, will address key concerns including the impact of chemical losses and LNG demand in emerging markets like Vietnam.
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