Turning down, the market is worried about supply fluctuations

Opening the morning trading session on March 14, 2024, today's gas price in the world market decreased slightly by 0.12% to 1.66 USD/mmBTU for natural gas contracts for delivery in April 2024.

In 2019, Russia and Ukraine signed a five-year deal to supply natural gas to European Union (EU) countries via a pipeline system. Both countries continue to honor the agreement despite two years of tensions in Ukraine.

But now the EU could be getting less Russian gas after Ukraine signaled it has no intention of extending the deal when it expires on December 31, 2024. The EU is warning member states to prepare for the worst. Ukrainian gas accounts for 5% of the EU’s total gas imports.

A gas compressor station in Morelmaison, France. (Photo: AFP/VNA)

The European Commission said the loss of Russian supplies via Ukraine could lead to higher shipping costs while storage taxes imposed between countries in the bloc could “make this diversification more difficult and costly”.

EU gas demand in the first 16 days of February 2024 was 12.4% lower than the same period last year and 18.4% lower than in February 2022. However, StanChart warned that some demand will not return no matter how low prices fall.

Meanwhile, weakening demand continues to weigh on the U.S. natural gas market, with Henry Hub gas prices down nearly 30% year-to-date. However, the market started the week on a positive note as natural gas giant EQT Corp. said it would cut production in response to low prices.

On March 4, EQT announced it would cut natural gas production by about 1 billion cubic feet per day through March 2024, after which it would reassess market conditions to determine its next course of action.

In the domestic market, the retail gas price in March 2024 continued to be adjusted upward from March 1. Thus, the domestic retail gas price has increased for the third consecutive month since the beginning of the year.

Specifically, the retail price of Petrolimex gas cylinders (including VAT) in the Hanoi market is 460,740 VND/12kg household cylinder; 1,842,760 VND/48kg industrial cylinder, respectively increasing 2,640 VND/12kg cylinder and 10,560 VND/48kg cylinder (including VAT) compared to the previous month. In the Southern region, some agents in Tan Binh district also said that Perolimex Saigon gas company, Total gas company... also increased the price by 2,000 VND/12kg cylinder.

Ho Chi Minh City Energy Import-Export Joint Stock Company informed that gas prices of City Petro, Vina Pacific Petro, Vimexco will increase by VND2,000/12kg cylinder and VND8,000/50kg cylinder. Accordingly, the retail price to consumers will not exceed VND481,000/12kg cylinder and VND2,002,500/50kg cylinder.

Similarly, Saigon Petro Company Limited increased by VND2,000/12kg cylinder, the maximum retail price to consumers is not more than VND443,000/12kg cylinder.

At the same time, Southern Gas Trading Joint Stock Company (Gas South) announced an increase in retail gas prices in March 2024, applicable to the following gas brands: Gas Dau Khi, VT-Gas, A Gas, Dak Gas, JP Gas, Dang Phuoc Gas. The specific increase is 167 VND/kg compared to the previous month, equivalent to an increase of 2,000 VND/12kg cylinder and 7,500 VND/45kg cylinder. With this increase, the retail gas price of Gas South to consumers is 471,900 VND/12kg cylinder and 1,770,831 VND/45kg cylinder (including VAT).

According to gas trading companies, the increase in the USD/VND exchange rate has caused the price of imported gas to Vietnam to increase. In the first 3 months of 2024, gas prices have continuously increased, with a total increase of 13,000 VND/12kg cylinder.

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

Information for reference only!

Source: https://congthuong.vn/gia-gas-hom-nay-ngay-1432024-quay-dau-giam-thi-truong-lo-bien-dong-nguon-cung-308533.html