Vietnam’s liquefied petroleum gas (LPG) production for December 2024 is projected to be 67,900 tons, with an estimated total of 764,200 tons for the entire year, according to Vietnam’s General Office of Statistics. This reflects a year-on-year decrease of 6.5 percent compared to 2023, but the LPG industry remains a key part of the nation’s energy supply.
In November 2024, the country produced 70,600 tons of LPG, which shows a solid output despite a slight decline in December.
Vietnam’s liquefied petroleum gas (LPG) production plays an important role in meeting domestic energy demand and contributing to the country’s energy mix. LPG is primarily used for cooking, heating, and industrial applications such as in the chemical and manufacturing sectors. It is also used as a fuel in the transportation industry, particularly for vehicles fitted with LPG systems.
Vietnam produces LPG through the refining process of crude oil, as well as from natural gas processing. Major oil and gas companies, including state-owned PetroVietnam and its subsidiary PetroVietnam Gas (PV Gas), are the main players in LPG production in the country. The key production facilities for LPG are the Dung Quat Refinery, operated by Binh Son Refining and Petrochemical Company, and the Nghi Son Refinery, which has contributed significantly to local LPG output.
Despite having domestic production, Vietnam is a net importer of LPG to meet the rising demand from households and industries. The country has become increasingly reliant on LPG imports, particularly from countries like Saudi Arabia, Singapore, and Malaysia. This is due to the rapidly growing demand for LPG as the number of households using gas for cooking and heating continues to increase, especially in urban areas.
The Vietnamese government has been taking steps to secure the supply of LPG through diversifying sources, investing in infrastructure such as storage and distribution networks, and supporting the development of the domestic LPG industry. This includes increasing the capacity of refineries and exploring alternative sources of gas production, such as liquefied natural gas (LNG), to reduce dependency on imports.
As Vietnam’s energy consumption grows, particularly with the rise in urbanisation and industrial development, LPG production is expected to expand, driven by both domestic extraction and imports, to meet the country’s energy needs. However, addressing infrastructure bottlenecks, ensuring supply stability, and managing the environmental impact of LPG production and consumption will be important challenges moving forward.
See also: Gas Power in Vietnam