Domestic gas prices continue to increase from March 1, 2024, why?

Specifically, the retail price of Petrolimex gas cylinders (including VAT) in March in the Hanoi market was VND 460,740/12 kg household cylinder; VND 1,842,760/48 kg industrial cylinder, respectively increasing by VND 2,640/12 kg cylinder and VND 10,560/48 kg cylinder (including VAT) compared to February.

Domestic gas prices have increased for the third consecutive month since the beginning of the year.

Southern Gas Trading Joint Stock Company (Gas South) announced that it will increase retail gas prices from March 1, with a specific increase of VND167/kg compared to last month, equivalent to an increase of VND2,000/12kg cylinder and VND7,500/45kg cylinder. With this increase, Gas South's retail gas price to consumers is VND471,900/12kg cylinder and VND1,770,831/45kg cylinder (including VAT).

According to Petrolimex Gas Corporation, although the average world gas price contract in March was at 635 USD/ton, unchanged from February, due to exchange rate fluctuations, Petrolimex Gas Corporation made adjustments according to the corresponding increase.

Currently, domestic gas supply only meets about 60% of consumer demand, so domestic gas prices are still affected by the international market.

In the world market, in the morning trading session on March 1, 2024, today's gas price in the world market increased by 0.16% to 1.85 USD/mmBTU for natural gas contracts for delivery in April 2024.

European gas prices have fallen to their lowest in nearly three years amid mild winter weather and stable high levels of European gas reserves, raising hopes that the energy crisis that has engulfed the region for the past three years may be coming to an end.

Remember in the summer of 2022, gas prices in Europe peaked, at one point soaring to more than 300 euros/MWh, as Russia continued to tighten supplies to the region following its invasion of Ukraine and weaponization of its abundant gas reserves.

According to the Aggregate Gas Storage Inventory (AGSI), the European Union's (EU) gas reserves are currently at 64.7% of their storage capacity. Meanwhile, the UK's gas reserves are 77.15% full.

However, until new LNG production comes online from Qatar and the US in 2026, global gas demand is likely to continue to outstrip supply, said Tom Marzec-Manser, head of global gas analysis at ICIS.

According to Tom Marzec-Manser, it is too early to declare the end of the energy crisis. We still see a lot of global mismatch between gas supply and demand. So it will be after the winter that we have greater confidence that the extreme volatility of the past few years is truly over.

Euractiv has just reported that the Balkan Stream gas pipeline through Bulgaria will become the main route for supplying Russian gas to the EU and Ukraine. Thus, Bulgaria will become the main route for importing Russian gas to the EU and Ukraine by 2025.

In the long term, Bulgaria will become an important transit country ensuring supplies to Romania, Moldova and Southeast European countries.

“When gas transit from Russia through Ukraine ends at the beginning of 2025, the vertical gas corridor through Bulgaria will be the only project that can ensure both the necessary transportation of liquefied gas and the uninterrupted operation of the gas transmission network and underground gas storage facilities in Ukraine,” said Vladimir Malinov, head of Bulgartransgaz.

Information is for reference only!

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