PV GAS moves to secure LNG, LPG supply amid Middle East tensions

PV GAS moves to secure LNG, LPG supply amid Middle East tensions

PV GAS said it has proactively arranged three LNG import cargoes for the first half of 2026 to maintain stable supply for power generation and industrial production.

An LNG carrier docks at Thi Vai LNG Terminal in Bà Rịa – Vũng Tàu. — VNA/VNS Photo

Việt Nam Gas Corporation (PV GAS) has rolled out contingency measures to secure domestic supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) as escalating tensions in the Middle East raise concerns over global energy flows.

The move comes as international oil and gas prices have surged amid fears of potential supply disruptions in the region, particularly along key transit routes such as the Strait of Hormuz — a chokepoint through which roughly one-fifth of the world’s oil and a significant share of LNG shipments passes.

Heightened geopolitical risks have pushed energy markets into greater volatility, with gas prices rising sharply compared to levels before the latest escalation.

In a statement released on March 4, PV GAS said it has proactively arranged three LNG import cargoes for the first half of 2026 to maintain stable supply for power generation and industrial production.

In early March, the company secured two LNG shipments of around 70,000 tonnes each sourced from Qatar — under contracts signed prior to the conflict — and from Southeast Asia.

Early procurement has allowed the firm to lock in more competitive prices, as global gas prices have climbed by around 50 per cent since geopolitical tensions intensified. PV GAS is continuing to seek suppliers for a third cargo to ensure stable supply in the coming months.

Available LNG inventories currently stand at about 15,000 tonnes. Along with confirmed shipments, this inventory is expected to ensure sufficient gas supply for power plants through the end of April.

From May onwards, the company plans to further diversify LNG sourcing markets while coordinating with the Vietnam National Industry - Energy Group (Petrovietnam) to maximise domestic gas production for electricity generation and refinery operations.

The risks are particularly pronounced in the LPG segment. Around 70 per cent of Việt Nam’s imported LPG originates from the Middle East, leaving the country exposed to potential supply chain disruptions should regional instability escalate.

To mitigate the threat, PV GAS said it is diversifying LPG import sources beyond the Middle East and adjusting the balance between exports and domestic consumption to prioritise local demand.

The company is also increasing domestic LPG output by about 5 per cent at the Dinh Cố and Cà Mau gas processing plants through additional use of onshore gas supplies.

In addition, PV GAS continues to provide integrated energy solutions that allow customers to switch to alternative fuels such as pipeline gas, compressed natural gas or LNG if necessary, helping ease pressure on imported LPG supplies. 

Bizhub