PVGas Trading "urgently warned", supply disruptions as a result of the Middle East war

PVGas Trading (part of PVGAS) announced the extension of the delivery of imported LPG due to the collapse of the bridge at the Middle East facility and the LPG tanker being attacked by missiles, causing supply disruptions.

On March 2, PVGas Trading sent an urgent document to customers in the Southern region, informing about the force majeure situation related to the supply of imported LPG. According to this business, the incident arising from the international supplier is directly affecting the delivery plan in the near future.

The cause was determined to be the collapse of the bridge at Saudi Aramco's NGL Juaymah facility that occurred on February 23. This infrastructure incident has disrupted shipments of previously signed Propane and Butane shipments. These are important refrigerant LPG products in the import structure of the Vietnamese market, especially serving civil and light industrial needs.

Not only stopping at production incidents, the shipping situation has also become complicated due to the escalating armed conflict in the Middle East. According to PVGas Trading, the journey of transporting refrigerated LPG through the Strait of Hormuz – a strategic maritime route connecting the supply of the Middle East with Asia – is facing serious security risks. As of 3 p.m. on March 2, at least two VLCCs (very large oil tankers) had been hit by missiles while moving through the area, severely affecting transportation plans and ensuring maritime safety.

In the face of risks to infrastructure and transportation security, all VLCC ships carrying refrigerated LPG from the Middle East are expected to be delivered in the period from the second half of March to the end of April 2026, there is currently no schedule to dock for PVGas Trading. This means that shipments expected to be imported to Thi Vai and Diem Dien refrigerated LPG warehouses from March 10 are forced to be suspended. Therefore, businesses have to adjust the delivery schedule and have not been able to arrange alternative supplies in the short term.

In response to the above situation, PVGas Trading said that it is urgently working with partners to find additional sources of goods as soon as possible, and at the same time try to control costs incurred at a reasonable level. However, businesses admit that the current context poses many challenges, when the East Asian market simultaneously falls into a shortage of supply. Even Thailand has activated a state of emergency and applied a ban on petroleum exports to ensure domestic energy security.

In the immediate period, PVGas Trading recommends that customers actively adjust their consumption plans, and at the same time consider finding alternative supplies if necessary before the two sides agree on the next feasible solutions. The business also commits to continuously update the situation and timely information to partners.

In Vietnam, LPG still plays an important role in the consumer energy structure, especially in the civil and light industrial sectors. The majority of LPG is used as cooking fuel for households, restaurants, and industrial stoves. In addition, LPG also serves the needs of heating, drying, and firing in some manufacturing industries. A small percentage is used as fuel for vehicles (autogas), but the scale is limited.

This tense development raises deep concerns about the risk of prolonged instability in the Middle East, the world's key energy supply region. If the conflict continues to escalate, the global LPG supply chain in general and the Vietnamese market in particular may continue to be under great pressure in the coming time.