PetroVietnam Low Pressure Gas Distribution JSC (PV GAS D), a subsidiary of Vietnam Gas Joint Stock Corporation (PV GAS), issued Official Letter No.803 on December 18 notifying Southern Gas Trading JSC (GAS SOUTH JSC) that gas deliveries would cease from January 1, 2026, when the gas purchase and sale contract between the two parties expires at midnight on December 31, 2025. In the notice, PV GAS D urged GAS SOUTH JSC to “proactively seek alternative fuel solutions.”
GAS SOUTH JSC, however, described the proposal as impractical. Speaking to reporters, a GAS SOUTH JSC representative said that PV GAS is currently the only entity assigned by the State to gather, transport, and distribute gas from Vietnam’s gas fields. “There is no other commercial natural gas source in the domestic market outside the PV GAS system. Under these circumstances, requiring us to independently secure alternative fuel sources within a matter of days is technically and commercially unfeasible,” the representative said.
GAS SOUTH JSC supplies CNG to a wide range of manufacturers, including steel, metal processing, ceramic tiles, ceramics, glass, food processing, and textile dyeing companies. Crucially, it also fuels nearly 500 public buses in HCMC, serving about 80,000 passenger trips each day.
A forced switch from CNG to gasoline or diesel would significantly raise operating costs. Estimates indicate expenses could climb by 30–40 percent, intensifying pressure on HCMC’s subsidized public transport budget. Such a shift would also increase greenhouse gas emissions, running counter to the city’s green transport objectives and Vietnam’s commitment to achieving net-zero emissions by 2050.
Concerns over supply stability are not new. The HCMC Department of Construction had previously sent two official requests, in September and November, asking PV GAS to stabilize CNG prices and ensure uninterrupted supply for the city’s bus network.
A review of coordination mechanisms is needed
Legal experts argue the issue should be assessed beyond the narrow scope of a routine commercial contract. Lawyer Le Thanh Kinh, Director of Le Nguyen Law LLC and an arbitrator at the Vietnam International Arbitration Center (VIAC), said the case raises potential competition law concerns.
Under the 2018 Law on Competition, abusing a dominant market position includes refusing or interrupting the supply of essential inputs without legitimate justification when such actions harm the market, Lawyer Le Thanh Kinh noted. “In markets where a company holds an absolute monopoly over supply, regulators will look at real-world impacts, not merely whether a contract has expired,” he said.
PV GAS is the sole entity authorized to collect and transport gas from Vietnam’s gas fields, while PV GAS D is its subsidiary responsible for low-pressure gas distribution. Given the absence of alternative suppliers, any assessment of potential competition law violations falls under the jurisdiction of state authorities, based on evidence and actual market effects.
GAS SOUTH JSC said it filed a formal petition with the National Competition Commission on November 6. The commission has accepted the case, engaged relevant parties, and is awaiting the requested information from PV GAS.
Experts say the incident underscores the need for the Ministry of Industry and Trade and relevant agencies to review coordination mechanisms and intervene promptly when disputes arise. Doing so would help prevent energy supply chain disruptions while ensuring a balanced alignment between business interests and broader social and environmental objectives.
