Vietnam's major gas distributor assures supply as businesses fear CNG disruptions from 2026

PV GAS D, formally known as PetroVietnam Low Pressure Gas Distribution JSC, told Tuoi Tre (Youth) newspaper on Thursday that it remains committed to ensuring gas supply for all customers.

The statement followed reports warning that hundreds of businesses and up to 500 CNG buses in Ho Chi Minh City could face shutdowns if gas supplies are disrupted.

Concerns surfaced after information circulated that PV GAS D might stop supplying natural gas for CNG production to Southern Gas Trading JSC from January 1, 2026.

Southern Gas Trading currently provides fuel to hundreds of factories and large numbers of CNG buses in Ho Chi Minh City, supporting manufacturing, logistics, and public transportation.

The news triggered anxiety among gas dependent manufacturers.

Sojitz Vietnam, part of Japan's Sojitz Corporation, warned that any disruption in CNG supply from 2026 would directly threaten dozens of factories at Long Duc Industrial Park in Dong Nai Province, southern Vietnam.

Sojitz Vietnam said it invested in a dedicated pipeline network based on long term gas supply commitments from PetroVietnam Gas JSC, with contracts extending to 2033 to ensure investor stability.

PetroVietnam Gas JSC, also known as PV GAS, operates under the Vietnam National Industry Energy Group and is the sole entity assigned by the state to collect, transport, and distribute gas from Vietnam's gas fields.

PV GAS is the parent company of PV GAS D.

Sojitz Vietnam noted that if preferential pricing and dedicated gas sources for CNG end in 2026, Southern Gas Trading would be forced to buy low pressure gas at market prices or switch to liquefied natural gas supplied by PV GAS at significantly higher costs.

The company described the situation as "very serious," recalling that gas cuts in January this year to prioritize power generation had already shaken Japanese investor confidence.

Local steelmaker Nam Kim Steel JSC raised similar concerns, saying any sudden interruption would immediately halt production lines that have relied on CNG since 2010. The company warned this could disrupt steel supply chains and damage Vietnam's reputation in international markets.

Nam Kim urged the Vietnam National Industry Energy Group to rebalance gas sources and pricing policies to maintain competitiveness after 2026.

PV GAS D said it supplies more than one billion standard cubic meters of gas annually and has delivered over 13 billion standard cubic meters safely and steadily to more than 130 industrial and transport customers.

However, the company acknowledged that declining domestic gas reserves and government directives require gas to be prioritized for electricity generation when necessary.

To stabilize supply, PV GAS D said it has expanded imports and completed a multi modal gas supply chain using pipelines, waterways, roads, and railways. The company stressed it is ready to provide imported gas to customers to ensure uninterrupted operations.

At a press briefing on Thursday, the Ho Chi Minh City Department of Industry and Trade said it has not received any official reports of a CNG supply suspension.

The municipal Department of Construction also requested PV GAS to maintain stable supply and reasonable prices, while accelerating plans to gradually transition public buses to electric power.

City officials confirmed that more than 300 CNG buses are currently operating normally and said positive signals suggest fuel supply in 2026 will remain stable, easing fears of large scale disruptions.