(Hanoi, 28th) Vietnam’s state-owned oil and gas giant, PV GAS, is significantly restructuring its energy procurement portfolio, shifting its liquefied petroleum gas (LPG) procurement focus from the Middle East to the United States in response to supply risks arising from regional conflicts.
According to Bloomberg, the company plans to import 66,000 tons of LPG from the US in May, higher than the 44,000 tons imported from the Middle East during the same period.
Due to heightened tensions in the Middle East and transport disruptions in the Strait of Hormuz, PV GAS has already imported 76,000 tons of LPG from the US so far in April, far higher than March’s 2,200 tons, with March being the company’s first month of sourcing the fuel from the US.
The company expects that, within three months of the outbreak of war, it will import 250,000 tons of LPG, with more than half coming from the US.
Pham Van Phong, PV GAS President and CEO, stated that the war has caused most long-term supply contracts to be interrupted, with some suppliers declaring force majeure. As a result, the company is actively seeking alternative sources in Australia, the US, Europe, and Africa.
Although domestic fuel supply remains stable at present, the Vietnamese government has tapped into petroleum emergency funds to stabilize market prices. Meanwhile, Vietnam is also actively cooperating with partners such as Russia, South Korea, and Japan to promote the development of nuclear energy and other infrastructure, strengthening future energy supply.
Additionally, the company has received approval from the Haiphong City People’s Committee to build a large LPG receiving terminal in Haiphong, with an expected investment of 7.5 trillion VND and an operational target in the third quarter of 2028.
Due to heightened tensions in the Middle East and transport disruptions in the Strait of Hormuz, PV GAS has already imported 76,000 tons of LPG from the US so far in April, far higher than March’s 2,200 tons, with March being the company’s first month of sourcing the fuel from the US.
The company expects that, within three months of the outbreak of war, it will import 250,000 tons of LPG, with more than half coming from the US.
Pham Van Phong, PV GAS President and CEO, stated that the war has caused most long-term supply contracts to be interrupted, with some suppliers declaring force majeure. As a result, the company is actively seeking alternative sources in Australia, the US, Europe, and Africa.
Although domestic fuel supply remains stable at present, the Vietnamese government has tapped into petroleum emergency funds to stabilize market prices. Meanwhile, Vietnam is also actively cooperating with partners such as Russia, South Korea, and Japan to promote the development of nuclear energy and other infrastructure, strengthening future energy supply.
Additionally, the company has received approval from the Haiphong City People’s Committee to build a large LPG receiving terminal in Haiphong, with an expected investment of 7.5 trillion VND and an operational target in the third quarter of 2028.