Vietnam faces LPG supply disruptions amid Middle East conflict

Liquefied petroleum gas (LPG) supplies to Vietnam have been disrupted as escalating conflict in the Middle East has prevented PV Gas Trading from securing additional cargoes, prompting the major importer to urge customers to seek alternative sources.

PV Gas Trading, a unit of PV Gas - a subsidiary of state-owned giant Petrovietnam, said in an urgent notice to customers in southern Vietnam that force majeure events are affecting supplies to its partners.

According to the company, its international supplier has formally declared force majeure following the collapse of a jetty at the Juaymah NGL facility operated by Saudi Aramco on February 23. The incident has disrupted deliveries of contracted propane and butane cargoes.

As a result, all LPG shipments scheduled to arrive at PV Gas’s cold LPG terminals at Thi Vai and Diem Dien from March 10, 2026 have been temporarily suspended.

The armed conflict in the Middle East has also affected voyages of refrigerated LPG carriers transiting the Strait of Hormuz. As of 3 p.m. local time on March 2, at least two very large crude carriers (VLCCs) had been hit by missiles while passing through the strait, the company said.

Several NGL (natural gas liquids) and LPG production facilities operated by suppliers in the region have also been attacked, sustaining serious damage. For safety reasons, suppliers have yet to confirm delivery plans for all Middle East-sourced refrigerated LPG cargoes committed for the period from the second half of March through the end of April 2026, PVGas Trading added.

In response, the company said it would be forced to cut the pace of imported deliveries through March 10, 2026 and currently has no ability to arrange import shipments beyond that date. “This situation is beyond the control of PV Gas Trading, and we hope to receive understanding and cooperation from our customers.”

PV Gas Trading said it is urgently working with partners to secure alternative supplies as soon as possible at the most reasonable additional cost, though conditions remain challenging as the East Asian market is tight. Thailand has already activated emergency measures, including a ban on fuel exports, it noted.

The company urged customers to proactively balance their consumption plans or arrange alternative supply sources while both sides work toward feasible solutions. PV Gas Trading said it would continue to update customers as the situation evolves.