Vietnam’s PV Gas Boosts LPG Output Amid Mideast Supply Disruptions

PV Gas Trading, the trading arm of PetroVietnam Gas, will increase domestic LPG production by 5% at the Dinh Co and Ca Mau gas processing facilities amid disruptions to Middle East supplies, the company said in a news release on Thursday.

The company will also aim to diversify Vietnam’s LPG supply sources and reduce reliance on Middle Eastern cargoes, which account for around 70% of the country’s LPG imports.

PV Gas added that customers can switch to alternative energy sources, such as pipeline gas or LNG, if needed. The company currently holds about 15,000 metric tons of LNG inventory, expected to last until the end of April, while it seeks additional supplies to extend coverage further.

The production increase follows PV Gas’s force majeure declared on LPG deliveries to domestic customers in Southern Vietnam on March 4, according to a letter seen by OPIS.

The force majeure was triggered by supply disruptions linked to a structural collapse at Saudi Aramco’s Juaymah NGL facility at Ras Tanura on Feb. 23. LPG deliveries to PV Gas’s storage facilities in Thi Vai and Diem Dien are expected to stop from Tuesday.

The company also cited shipping disruptions at the Strait of Hormuz amid escalating regional tensions. All very large gas carriers carrying Middle Eastern LPG with loading commitments from the second half of March to the end of April will not be able to deliver cargoes for PV Gas Trading, the letter stated.

All LPG deliveries to PV Gas Trading are expected to slow until March 10 before stopping completely thereafter.