Vietnam is emerging as one of the fastest-growing markets in Southeast Asia. This expansion is driving a forecast surge in domestic gas demand over the coming decades, even as mature domestic fields face declining production profiles.
PV GAS Thi Vai LNG terminal, Ba Ria - Vung Tau. (Photo: PV Gas)
Malaysia's national oil and gas conglomerate Petronas has committed to partnering with Vietnam on long-term liquefied natural gas (LNG) supplies while expanding cooperation in upstream exploration and production and renewable energy development, aiming to safeguard stable energy supplies at affordable costs.
Speaking at a press briefing on October 20, Mr. Aimy Zairin Mohamed, Petronas Country Head for Vietnam, noted that global energy demand continues to surge, with the ASEAN region projected to account for 20% of global demand growth through 2035.
This dynamic necessitates closer cross-border collaboration among regional governments and enterprises to satisfy mounting energy appetites while simultaneously ensuring sustainability and cost affordability.
According to Mr. Aimy, Vietnam is emerging as one of the fastest-growing markets in Southeast Asia. This expansion is driving a forecast surge in domestic gas demand over the coming decades, even as mature domestic fields face declining production profiles. The situation underscores the urgent need for a balanced energy mix that reconciles energy security, affordability, and decarbonization targets.
Amid expanding supply-demand imbalances, Mr. Aimy highlighted three key supply pillars capable of meeting Vietnam’s burgeoning energy needs: domestic upstream hydrocarbon extraction, imported LNG, and renewable energy.
Regarding domestic supply, Petronas continues to coordinate with the Vietnam National Energy and Industry Group (Petrovietnam) to explore and appraise oil and gas reserves across Vietnam’s sedimentary basins.
Alongside upstream exploration and production, Petronas views imported LNG as a vital complementary resource. In April 2025, Petronas LNG Ltd completed its maiden LNG cargo delivery to PetroVietnam Gas Joint Stock Corporation (PV GAS). The cargo was shipped from the Petronas LNG Complex in Bintulu, Sarawak, to the Thi Vai LNG Terminal in southern Vietnam.
Addressing prospective long-term supply agreements, he noted that bilateral discussions with the Vietnamese government and Petrovietnam remain ongoing, precluding specific volume disclosures at this stage. Nevertheless, he emphasized that long-term offtake contracts play a pivotal role in anchoring supply reliability and price predictability.
The third supply pillar outlined by Petronas centers on renewable energy, led by the Vietnam–Malaysia–Singapore (VMS) cross-border power grid interconnection project alongside renewable ventures in Vietnam designated under existing Strategic Alliance Agreement (SAA) frameworks.