PV Gas reduces LPG deliveries amid Middle East conflict disruptions

PV Gas reduces LPG deliveries amid Middle East conflict disruptions

State-run Vietnam Oil and Gas Group subsidiary PV Gas has been forced to scale back its liquefied petroleum gas deliveries following supply disruptions linked to armed conflict in the Middle East and operational incidents at key production facilities.

LPG storage tanks supplying customers

On March 2, PVGas Trading – the trading arm of Vietnam Gas Corporation (PV Gas) issued an urgent force majeure notice to its customers in southern Vietnam, citing two primary causes behind the disruption.

The first stems from an official force majeure declaration by the company’s international supplier following the collapse of a loading bridge at the NGL Juaymah facility on February 23. The incident has disrupted contracted shipments of propane and butane.

As a result, all LPG cargoes scheduled to arrive at the Thi Vai and Diem Dien refrigerated terminals from March 10 have been postponed.

The second factor relates to escalating armed conflict in the Middle East, which has affected the transit of refrigerated LPG vessels through the Strait of Hormuz. As of 3 p.m. on March 2, 2026, at least two very large crude carriers had reportedly been struck by missiles while passing through the strategic waterway. In addition, several NGL/LPG production facilities operated by suppliers in the region have come under attack and sustained significant damage.

For safety reasons, all very large gas carriers transporting refrigerated LPG from the Middle East under delivery commitments scheduled from the second half of March through the end of April 2026 currently have no confirmed delivery plans to PV Gas Trading.

Given these force majeure circumstances, PV Gas Trading said it would adjust its imported LPG delivery schedule through March 10, 2026, and is currently unable to arrange imported supply for customers beyond that date.

The company stressed that the situation was beyond its control.

PV Gas Trading is working with partners to secure alternative supply sources at the earliest possible time. However, it is facing significant challenges as the broader East Asian market is experiencing tight supply conditions. Some countries, including Thailand, have reportedly activated emergency measures, including temporary bans on fuel exports.

In the interim, the company has urged customers to adjust their consumption plans or seek alternative supply sources while awaiting feasible solutions.

VIR