Russia delivers first LNG shipment to Vietnam amid sanctions
Amid ongoing international sanctions, Russia has expanded its economic outreach to Asia with its first-ever shipment of liquefied natural gas (LNG) to Vietnam.
The cargo was loaded at Russia’s Sakhalin-2 LNG project and arrived at Vietnam’s Cai Mep LNG terminal on June 5. Ship-tracking data from London Stock Exchange Group and Kpler, a Brussels-based data and analytics company, confirms that the shipment traveled aboard the Blue Dragon 1, a tanker with a capacity of 145,819 cubic meters. Built in 2006 and formerly known as Stena Blue Sky, the vessel was acquired by a Vietnamese company in April 2024 and is currently designated for storage use.
The Cai Mep LNG terminal, located in southern Vietnam’s Ba Ria-Vung Tau province, is set to become the country’s second operational LNG facility. It has an annual import capacity of up to three million tonnes and includes 220,000 cubic meters of storage capacity. The terminal is operated by Cai Mep LNG, a joint venture between Singapore-based AG&P LNG and Vietnamese fuel distributor Hai Linh Company.
This delivery reflects a broader strategic energy partnership between the two countries. On May 10, Russia and Vietnam signed a joint declaration to enhance cooperation in the energy, oil, and gas sectors. The agreement aims to improve the efficiency of existing energy projects while also supporting new initiatives, including the shipment and refining of Russian crude oil and LNG in Vietnam.
The deepening cooperation comes as Vietnam faces an intensifying energy crisis triggered by extreme heat. On June 2, the country recorded an average national temperature exceeding 30°C, while electricity demand surged to a record-breaking 52 gigawatts. In response, Prime Minister Pham Minh Chinh directed state-owned enterprises to ensure an uninterrupted power supply for both residential and commercial use.
Russia has signaled its readiness to help meet Vietnam’s growing energy needs. In April, the Russian Ministry of Energy confirmed that energy dialogue between the two countries was gaining momentum, particularly with respect to LNG supplies.
“We will do everything possible to sign the necessary documents before the meeting between the leaders of our states,” EurAsia Daily quoted Russian Energy Minister Roman Marshavin as saying. “The projects we are discussing now are aimed at long-term interaction, they set the vector of our cooperation for long years ahead.”
Vietnam has reciprocated by offering Russian companies new investment opportunities. Hanoi has invited Russian companies to upgrade the Dung Quat refinery, which is managed by PetroVietnam through the Binh Son Refining and Petrochemical Company. Additionally, the government has proposed selling a 49% stake in the facility.
Russia remains a key player in the global LNG market. According to the U.S. Energy Information Administration, the country holds approximately 1,688 trillion cubic feet of proven natural gas reserves — nearly one-quarter of the global total.
Currently, Russia operates two major LNG facilities: the Sakhalin-2 plant, managed by Gazprom, with an annual output of 9.6 million tonnes, and the Yamal LNG project, which produces 16.5 million tonnes per year across three production trains.
By Vusala Abbasova – Caspian News – June 8, 2025