Vietnam’s PV GAS secures US, Australia LPG imports amid supply crunch

The company imported 5,000 tonnes from the U.S. on Tuesday and plans to import nearly 48,000 tonnes more in April, alongside smaller cargoes.

PV GAS, a unit of Vietnam National Industry - Energy Group (Petrovietnam), said it aims to ensure supply for March and April and meet most demand in May.

It had worked with customers to agree supply plans for the coming months amid tightening global supply and rising prices.

The firm is increasing domestic production and diversifying imports away from the Middle East.

The conflict involving the U.S., Israel, and Iran in the Middle East since February 28 and the closure of the Strait of Hormuz by Iran have tightened supply and driven price volatility.

About 70 percent of Vietnam's LPG imports typically come from the Middle East, PV GAS said.

The company said it has maximized domestic gas output, adjusted processing operations to boost LPG and condensate production, and managed inventories to maintain supply.

It has also sourced LPG from the United States, Australia, East Asia, and Southeast Asia to offset reduced Middle East supply, while offering alternatives such as pipeline gas and compressed natural gas to industrial users.

PV GAS said it and its trading arm are coordinating with customers to procure spot cargoes and distribute them at cost, without adding profit margins.

According to the firm, LPG premiums in Asia have risen sharply, at times 10 to 15 times higher than before the recent disruption.