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LPG Trade Reordered: US Becomes Key Supplier Amidst Conflict
28 Apr
Summary
- PV GAS significantly increases US LPG imports, surpassing Middle East suppliers.
- Global LPG trade is being reconfigured due to conflict disruptions.
- New LPG terminal in Haiphong aims to boost import and storage capacity.
Global energy flows are being reshaped by conflict, with Vietnam's PetroVietnam Gas JSC (PV GAS) significantly increasing its imports of liquefied petroleum gas (LPG) from the United States. This marks a departure from its traditional Middle East suppliers.
PV GAS will bring in 66,000 tons of LPG from the US in May, exceeding the 44,000 tons from the Middle East. This shift is a direct response to disruptions caused by the war, which has impacted production and shipping routes, prompting PV GAS to seek alternative supplies from new partners worldwide.
Over the three months following the conflict's outbreak, PV GAS is set to import 250,000 tons of LPG, with more than half sourced from the US. This reconfiguration of the global LPG trade sees Asian countries managing shortages and turning to new suppliers as a return to pre-war conditions appears unlikely.
To further enhance its supply chain, PV GAS has received approval to develop a large-scale LPG terminal in Haiphong, projected to cost 7.5 trillion dong ($290 million) and commence operations in Q3 2028. The company is also considering a liquefied natural gas terminal as part of the project's second phase.
