Malaysia's Petronas, Vietnam's PV Gas seek to deepen ties in LNG

The Malaysian government-owned oil and gas giant Petronas and PV Gas, a subsidiary of state-owned Petrovietnam, aim to strengthen their ties in a "comprehensive, long-term and sustainable manner", including in LNG supply and projects.

Leaders of the two regional giants, including Pham Van Phong, PV Gas's general director; Nguyen Phuc Tue, the corporation's deputy general director; and Shamsairi Ibrahim, vice president of Petronas, last week met to discuss establishing such a relationship in Hanoi.

The PV Gas leaders noted that Vietnam's LNG demand will continue to grow strongly in the coming years, both in short-term, medium-term, and long-term contracts.

On that basis, PV Gas proposed that Petronas increase its support through spot contracts and term contracts starting from 2026, especially the newly-issued term LNG procurement package.

In addition, the PV Gas side said it hopes Petronas will study the possibility of adding gas sources to the PM3-Ca Mau pipeline system, Ca Mau Gas Distribution Center, and consider expanding investment cooperation in international LNG projects in the future.

"These proposals clearly demonstrate PV Gas's commitment to establishing a comprehensive, long-term and sustainable cooperative relationship with Petronas, together contributing to national energy security and the sustainable development of Vietnam's energy industry," PV Gas said in a release on its website.

In response, Petronas stated that they highly appreciated the sustainable and close relationship with Petrovietnam and PV Gas.

Based on the Memorandum of Cooperation (MoC) signed between Petrovietnam and Petronas in the past, the two sides are actively implementing many coordination activities and expanding cooperation in many fields.

The Petronas side noted that they acknowledged and evaluated PV Gas as "a prestigious and reliable partner" over the years, especially the successful cooperation in the first LNG deal between the two sides in Q1/2025.