Slight increase in the first trading session of the month

Opening the morning trading session on May 2, 2024 (Vietnam time), today's gas price in the world market increased by 0.16% to 1.93 USD/mmBTU for natural gas contracts for delivery in June 2024.

Despite moves to reduce gas dependence on Russia, Russia remains Europe’s second-largest supplier of liquefied natural gas (LNG). LNG imports from Moscow will account for 16% of the 27-member bloc’s total LNG supply by 2023. France, Spain and Belgium are particularly large importers of Russian gas. These three countries will account for 87% of LNG entering the EU by 2023.

Gas pipeline system

However, much of this LNG is not needed by the European market and is being processed at European ports before being re-exported to third countries around the world, making some countries and companies profit.

Mr Hilgenstock said a lot of Russian LNG is just shipped to Europe without being used. So it has nothing to do with Europe's natural gas supply. "European companies make money by supporting Russian LNG exports," he said.

According to a recent report by the Centre for Research on Energy and Clean Air (CREA), just under a quarter of Europe’s LNG imports from Russia (22%) will be shipped to the global market by 2023.

Much of this LNG is sold to countries in Asia, said Petras Katinas, an energy analyst at CREA. As a result, some European members, such as Sweden, Finland and the Baltic states, are pressuring the bloc to impose a complete ban on Russian LNG – a move that would require the agreement of all member states.

European discussions are currently focused on banning the re-export of Russian LNG from European ports. However, the EU’s energy regulator Acer recently warned that any reduction in Russian LNG imports must be “gradual” to avoid an energy shock.

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-252024-tang-nhe-trong-phien-giao-dich-dau-thang-317678.html