In a significant development underscoring Russia’s pivot toward Asia amid ongoing international sanctions, the country has completed its first-ever shipment of liquefied natural gas (LNG) to Vietnam.
The LNG cargo departed from Russia’s Sakhalin-2 project and arrived at Vietnam’s Cai Mep LNG terminal on June 5. According to data from the London Stock Exchange Group and Brussels-based analytics firm Kpler, the shipment was transported aboard the Blue Dragon 1, a tanker with a capacity of 145,819 cubic meters. Originally launched in 2006 as Stena Blue Sky, the vessel was acquired by a Vietnamese firm in April 2024 and is now designated for storage purposes.
The Cai Mep terminal, located in southern Vietnam’s Ba Ria–Vung Tau province, is poised to become the nation’s second operational LNG hub. It features an annual import capacity of up to three million tonnes and offers 220,000 cubic meters of storage. The terminal is managed by Cai Mep LNG, a joint venture between Singapore-based AG&P LNG and Vietnamese energy distributor Hai Linh Company.
This inaugural delivery marks a deepening of energy collaboration between Russia and Vietnam. On May 10, the two nations signed a joint declaration aimed at bolstering cooperation in the energy, oil, and gas sectors. The agreement seeks to enhance the efficiency of existing ventures while paving the way for new initiatives, including the supply and processing of Russian crude oil and LNG in Vietnam.
The closer ties come as Vietnam grapples with a mounting energy crisis fueled by extreme weather. On June 2, the country recorded a national average temperature exceeding 30°C, coinciding with electricity demand hitting an all-time high of 52 gigawatts. In response, Prime Minister Pham Minh Chinh ordered state-owned enterprises to guarantee an uninterrupted power supply for both residential and commercial consumers.
Russia has expressed its commitment to supporting Vietnam’s energy demands. In April, the Russian Ministry of Energy announced that bilateral energy discussions were accelerating, with LNG supplies taking center stage.
“We will do everything possible to sign the necessary documents before the meeting between the leaders of our states,” Russian Energy Minister Roman Marshavin told. “The projects we are discussing now are aimed at long-term interaction, setting the trajectory of our cooperation for many years to come.”
Vietnam, in turn, has opened doors for increased Russian investment. Hanoi has invited Russian companies to help modernize the Dung Quat refinery, operated by PetroVietnam via the Binh Son Refining and Petrochemical Company. The government has also proposed selling a 49% stake in the facility to foreign partners.
Russia remains a dominant force in the global LNG landscape. The U.S. Energy Information Administration estimates that the country holds around 1,688 trillion cubic feet of proven natural gas reserves — nearly 25% of the global total. Key facilities include the Sakhalin-2 plant, operated by Gazprom with an annual capacity of 9.6 million tonnes, and the Yamal LNG project, which produces 16.5 million tonnes annually across three trains.
