Gas price today March 28: Europe expected to increase imports...

World market

Recorded on Oilprice.com at 08:39 on March 28, 2025 (Vietnam time), world natural gas prices reversed and increased sharply by 2.31% (equivalent to an increase of 0.089 USD) to 3,950 USD/mmBTU at the time of survey.

Source: Oilprice.com

This week, Europe’s gas reserves fell to a worrying low of around 34% full. Germany, one of the region’s largest economies, had reserves of just 29%. Against this backdrop, LNG imports are expected to rise, and Europe may be spared from a price spike thanks to reduced demand from China.

Earlier this year, data from Kpler showed that China’s imports of liquefied natural gas (LNG) fell to a five-year low of just 4.5 million tonnes. Reasons included mild winter weather, ample reserves that China had consciously built up since the 2017 gas crisis, and slowing industrial activity. In addition, China’s 15% import tariff on US LNG, in retaliation for Donald Trump’s tariffs, also contributed to the demand decline. Kpler forecasts that China’s LNG imports will be 22% lower in the quarter compared to the same period last year, which will ease pressure on the global market and clearly benefit Europe.

Meanwhile, Europe continues to struggle with energy security despite major plans to reduce its reliance on fossil fuels. Despite the rise of wind and solar power, natural gas remains an important source of energy for electricity and heating. The EU has been working to improve its energy strategy, including a joint gas purchasing initiative after the Great Recession of 2022. However, this programme only meets 2% of the EU’s natural gas needs, reflecting its heavy reliance on spot markets and external supplies.

To ensure energy security, Europe is diversifying its LNG supply. Drewry Research recently reported that Europe will increase its relationships with suppliers from Africa and Qatar, in addition to its large supply from the United States. American LNG producers remain an important source of supply, thanks to their proximity to European import terminals and flexibility in the spot market. Europe is expected to import an additional 20 million tonnes of LNG this year—about 250 cargoes—to meet demand.

However, the LNG market is not without risks. China could increase imports again if domestic demand increases, reducing global supplies. In addition, technical problems or production disruptions are common, making LNG supplies unstable. Europe, in this situation, could once again become the highest bidder competing for supplies, increasing the region’s energy costs.

One possible approach to mitigating risk is to follow the “Japanese model,” in which countries invest directly in overseas LNG projects and sign long-term contracts. However, this solution is inconsistent with Europe’s long-term green energy transition goals. The Institute for Energy Economics and Finance has criticized this model, saying it is inconsistent with plans to increase renewable energy.

However, the current reality is that gas will remain essential to ensuring reliable energy, at least in the short term. Germany’s recent return to coal after the closure of its nuclear power plants shows that Europe is still struggling to strike the right balance between energy transition and energy security.

Overall, China’s temporary reduction in LNG imports is a great opportunity for Europe to replenish its reserves and stabilize the energy market. However, dependence on volatile global factors is not a sustainable strategy. Europe needs a long-term plan to reduce its dependence on LNG while promoting renewable energy, in order to build a stable and sustainable energy system in the future.

Domestic gas prices

Due to the slight decrease in world gas prices, many businesses adjusted domestic retail gas prices down in March, the second month in 2025 that gas prices decreased. In January 2025, gas prices decreased by VND3,500/12kg, due to the world gas price decreasing by USD12.5/ton compared to December 2024.

Specifically, the retail price of Petrolimex gas cylinders (including VAT) in March 2025 in the Hanoi market is 457,400 VND/12kg household cylinder; 1,829,600 VND/48kg industrial cylinder, respectively decreasing by 2,700 VND/12kg cylinder and 10,500 VND/48kg cylinder (including VAT).

Similarly, gas prices of City Petro, Vimexco, Vina Pacific Petro at Pacific Petroleum Trading Joint Stock Company (Gas Pacific Petro) decreased by 167 VND/kg.

Specifically, the 6kg cylinder will be reduced by 1,000 VND/cylinder and the new selling price is 275,500 VND/6kg cylinder; the 12kg cylinder will be reduced by 2,000 VND/cylinder, to 491,500 VND/12kg cylinder; the 45kg cylinder will be reduced by 7,500 VND, to 1,842,000 VND/45kg cylinder; the 50kg cylinder will be reduced by 8,000 VND/cylinder, to 2,046,500 VND/50kg cylinder.

Along with the downward trend, Southern Gas Trading Joint Stock Company (Gas South) announced a reduction in retail gas prices by 167 VND/kg compared to last month, equivalent to a reduction of 2,000 VND/12kg cylinder and 7,500 VND/45kg cylinder.

After adjustment, retail gas prices to consumers fluctuate between VND475,400/12kg cylinder and VND1,784,111/45kg cylinder (including VAT) in the Southeast region. This new price applies to the company's gas brands, including: Gas Dau Khi, VT - Gas, A Gas and JP Gas.

The decrease in domestic retail gas prices is a positive signal for both consumers and businesses. Especially after Tet, when households return to their normal lives and businesses resume operations, the decrease in gas prices will help save on living expenses and production costs.

Source: https://baodaknong.vn/gas-price-hom-nay-28-3-chau-au-du-kien-se-tang-nhap-khau-lng-247519.html