Around one-fifth of the world’s oil moves through the Strait of Hormuz — and strikes there have pushed Vietnam’s state gas firm, PV GAS, to arrange three LNG import cargoes for the first half of 2026. The company said it has already booked two shipments of roughly 70,000 tonnes each, holds about 15,000 tonnes in inventory to cover demand through April, and is seeking a third cargo to steady power plants and refineries while reducing reliance on Middle East LPG and crude.

PV GAS moves to lock supply

PV GAS told customers on March 4 that it has proactively arranged three LNG import cargoes for the first half of 2026 to steady supplies for electricity generation and industry. The company said two shipments — each about 70,000 tonnes — were sourced from Qatar and Southeast Asian suppliers under contracts signed before the conflict. It also reported gas inventories of roughly 15,000 tonnes, which together with confirmed shipments should cover power-plant demand through the end of April.

The company said it is still seeking a third cargo for the coming months and will diversify sourcing beyond traditional suppliers. PV GAS is coordinating with state energy group Petrovietnam to maximise domestic gas output for power and refineries.

How the Middle East shock spread

Operational disruption in the Gulf has remade the market. Analysts say roughly one-fifth of global oil normally passes through the Strait of Hormuz, making the route a key transit point for world energy flows.

Mastheads

Strikes in late February 2026 disrupted shipping through the strait and led to delays for many vessels. Producers across the Gulf have cut output, and a key export terminal was reported closed after attacks, further constraining exports. The result has been sharp price and shipping movements as markets reacted to operational and insurance risks.

Vietnam’s structural exposure

Vietnam’s energy system is especially exposed to Gulf disruptions. The country imports billions of dollars of crude each year, with a large share coming from the Persian Gulf region. That leaves fuel supplies and refinery feedstocks vulnerable when tanker traffic is halted or when exporters cut cargoes.

Vietnam runs two major refineries: Binh Son’s Dung Quat complex and the Nghi Son Refinery and Petrochemical plant. Together they supply a large share of the nation’s refined-fuel demand. Nghi Son in particular depends on Kuwaiti feedstock, which routes through the Strait of Hormuz — a reliance industry sources say increases its exposure while tanker routes remain unsafe.

And LPG is a separate pressure point. PV GAS noted that a large share of Vietnam’s imported LPG comes from the Middle East. That concentration means any sustained disruption in Gulf exports will force importers to scramble for alternative cargoes and push up domestic prices.

Company and system responses

PV GAS has taken multiple actions to blunt the shock, including:

  • Securing LNG cargoes for the first half of 2026 (two confirmed shipments of ~70,000 tonnes each and seeking a third).
  • Shifting LPG sourcing away from the Middle East where possible.
  • Increasing domestic LPG output at the Dinh Co and Ca Mau processing plants by using more onshore gas.
  • Advising customers on fuel-switching options such as pipeline gas, compressed natural gas and LNG to relieve pressure on imported LPG.
  • Coordinating with Petrovietnam to manage supplies and support the power and refining sectors while alternative supply lines are secured.

Related Articles

PV GAS said the measures are intended to steady domestic supplies for power generation and industry; the confirmed shipments and about 15,000 tonnes in inventory should cover power-plant demand through the end of April.

This article was created with AI assistance.