Up again at the beginning of the week

Opening the morning trading session on February 26, 2024, today's gas price in the world market increased by 4.53% to 1.77 USD/mmBTU for natural gas contracts for delivery in April 2024.

Retail gas price in Hanoi in February 2024 is 458,100 VND/12 kg household cylinder

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.

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.

Gas prices in Europe peaked in the summer of 2022, at one point soaring above 300 euros/MWh, as Russia continued to squeeze supplies to the region following its invasion of Ukraine and weaponization of its vast gas reserves.

Since then, concerted efforts by EU countries to curb demand, as well as robust LNG imports from countries such as the US and consecutive warm winters have all helped ease Europe's gas supply crisis.

According to the European Commission, Russian pipeline gas, which accounted for 40% of EU supplies before the Ukraine war, has fallen to 8%.

However, Europe has no way to stop importing Russian gas as some countries continue to buy at a record pace. European countries continue to buy more than half of Russia's gas production, High North News reported.

Spain emerged as a major importer through 2023, surpassing previous record buyers France and Belgium. Norway also continued to expand its LNG portfolio, including non-EU destinations.

Despite European officials backing measures to restrict Russian liquefied natural gas (LNG) flows into the EU, the reality on the ground is moving in the opposite direction.

Last year European countries imported 19.5 billion cubic metres (bcm) of LNG from Russia; plus 5.2 bcm transported through European terminals and exported to countries outside Europe.

In total, EU countries have purchased more than $30 billion worth of Russian LNG since the Russia-Ukraine conflict began in February 2022. During that period, Russia was the EU's second-largest LNG supplier, behind only the United States, ahead of Qatar and Algeria.

In the domestic market, domestic retail gas prices have increased since February 1 following the increase in world gas prices, each 12kg gas cylinder has increased by about 5,000 VND/kg.

Specifically, the retail price of Petrolimex gas cylinders in Hanoi in February 2024 (including VAT) is 458,100 VND/12 kg household cylinder; 1,832,200 VND/48 kg industrial cylinder, respectively increasing 5,340 VND/12 kg cylinder and 21,160 VND/48 kg cylinder (including VAT) compared to the gas price in January.

Gas businesses in the South said that gas companies increased the price of 12kg gas cylinders by over 60,000 VND/cylinder. The equivalent price of gas will increase by about 5,000 VND/kg.

At Pacific Petroleum Trading Joint Stock Company (Gas Pacific Petro), from February 1, the gas price at this company increased by 417 VND/kg (including VAT).

Accordingly, the price of a 6kg cylinder increased by 2,500 VND/cylinder, a 12kg cylinder increased by 5,000 VND/cylinder, a 45kg cylinder increased by 19,000 VND/cylinder, and a 50kg cylinder increased by 21,000 VND/cylinder. The price of a 6kg gas cylinder to consumers does not exceed 269,000 VND/cylinder, a 12kg cylinder is 479,000 VND/cylinder, and a 45kg cylinder is 1,796,500 VND/cylinder...

Saigon Petroleum Company Limited (Saigon Petro) announced that from February 1, it will increase by VND5,000/12kg cylinder. Accordingly, the retail price to consumers will be VND441,000/1kg cylinder.

Similarly, the Southern branch of Vietnam LPG Gas Trading Joint Stock Company announced that from February 1, the selling price of PetroVietnam Gas will increase by VND5,000/12kg cylinder and VND18,765/45kg cylinder.

At Ban Mai Xanh gas system, from February 1, gas prices will be adjusted to increase by 3,000 VND/6kg cylinder (266,000 VND/cylinder), 5,000 VND/12kg cylinder (438,000 VND/cylinder), and 19,000 VND/45kg cylinder (1,589,000 VND).

The reason for this price increase is that the average world gas price contract for February 2024 was at 635 USD/ton, an increase of 10 USD/ton compared to January 2024, so Petrolimex Gas Corporation made adjustments according to the corresponding increase.

This is the second consecutive month in 2024 that gas prices have been adjusted upward. Previously, domestic retail gas prices in January 2024 increased by VND6,000/12kg cylinder, VND22,500/45kg cylinder and VND25,000/50kg cylinder.

Information is for reference only!

Source