The increase has not ended due to limited supply

Opening the morning trading session on May 22, 2024, today's gas price in the world market increased by 0.19% to 2.66 USD/mmBTU for natural gas contracts for delivery in June 2024.

Wholesale gas prices in the Netherlands and Britain rose on Monday (May 20) amid supply concerns due to upcoming maintenance in Norway and ongoing outages at the Gorgon LNG facility in Australia.

Gas price today, May 22, 2024: The increase has not stopped due to limited supply. Illustrative photo

The risk of disruption to Norwegian gas production has contributed to the price increase as some facilities carry out seasonal maintenance work, said Daniel Hynes, senior commodity strategist at ANZ bank.

A complete shutdown of the Kollsness gas processing plant and the Troll gas field is planned for this week, as well as ongoing outages at the Visund and Gullfaks fields.

“The next day’s prices will be mainly driven by the planned closure of Kollsness and Troll with a strong impact of 158 million cubic metres per day (mcm/d),” said LSEG analyst Tomasz Marcin Kowalski.

“The maintenance is only scheduled for one day, but the impact on the supply to Continental receivers will be huge. Much will depend on whether the maintenance goes as planned,” said Mr Kowalski.

Weaker renewable energy production has also supported prices. LNG prices in North Asia rose this week, rising more than $11 per mmBTU, as hot weather boosted cooling demand and prompted consumers to seek more LNG.

Chevron was forced to reschedule some LNG shipments to Asia due to the shutdown of its Gorgon export facility in Australia. Meanwhile, a Ukrainian drone attack on Friday (May 18) has raised concerns that Russia could retaliate with an attack on Ukrainian gas infrastructure, ANZ’s Hynes said.

In the domestic market, domestic retail gas prices in May continued to decrease since May 1. Accordingly, for 12kg gas cylinders, gas companies will reduce prices by more than VND7,000/cylinder. Thus, domestic retail gas prices have decreased for the second consecutive month since the beginning of the year.

Specifically, the retail price of Petrolimex gas cylinders (including VAT) in May 2024 in the Hanoi market is 448,800 VND/12 kg household cylinder; 1,795,200 VND/48 kg industrial cylinder, respectively decreasing by 7,300 VND/12 kg cylinder and 29,100 VND/48 kg cylinder (including VAT).

Similarly, the gas prices of City Petro, Vina Pacific Petro, and Vimexco of Ho Chi Minh City Energy Import-Export Joint Stock Company also decreased by VND5,000/12kg cylinder and VND21,000/50kg cylinder. Accordingly, the retail gas price to consumers does not exceed VND471,000/12kg cylinder and VND1,960,500/50kg cylinder.

PetroVietNam Gas price of Vietnam LPG Gas Trading Joint Stock Company, Southern branch, decreased by 5,000 VND/12kg cylinder and 18,750 VND/45kg cylinder; Saigon Petro gas price of Ho Chi Minh City Petroleum One Member Co., Ltd. (Saigon Petro) decreased by 4,500 VND/12kg cylinder, the maximum retail gas price to consumers does not exceed 434,000 VND/12kg cylinder.

The reason for this price reduction is that the average world gas price contract in May was at 582.5 USD/ton, down 35 USD/ton compared to April, and also due to fluctuations in the USD exchange rate, so domestic prices were adjusted accordingly.

Thus, since the beginning of the year, domestic gas prices have increased 3 times (January, February, March) and decreased 2 times (April, May).

Information is for reference only!

Source: https://congthuong.vn/gia-gas-hom-nay-ngay-2252024-chua-dut-da-tang-do-han-che-nguon-cung-321433.html