Gas prices in Vietnam decrease due to global price decline
Gas filling line at the Thang Long Liquefied Gas Joint Venture Company’s factory. Photo: Ha Thai/TTXVN
Gas companies in Vietnam will reduce prices for 12kg gas cylinders by over VND7,000 per cylinder.
Specifically, the retail price of a 12kg Petrolimex gas cylinder (including VAT) in May 2024 in Hanoi is VND448,800; and a 48kg industrial cylinder is VND1,795,200, down VND7,300 per 12kg cylinder and VND29,100 per 48kg cylinder (including VAT), respectively.
According to Mr. Nghiem Xuan Cuong, Head of Petrolimex’s Civil Gas and Commercial Business Department, the price reduction this time is due to the average global gas price in May being USD582.5 per ton, a decrease of USD35 per ton compared to April. Due to the change in the USD exchange rate, Petrolimex has adjusted the price accordingly.
So far this year, domestic gas prices have increased three times and decreased twice.
As of 30/4, the global gas price for June 2024 contracts decreased by 0.15% to USD2.01 per mmBTU.
Wholesale gas prices in the Netherlands and the UK fell on Monday (April 29) due to warmer weather reducing demand, according to Reuters.
A trader said the market has absorbed some of the risks priced in the previous week.
The risk increased after the European Union’s (EU) speculation about Russian LNG sanctions, which have gradually eased as there is no new information. This allows the focus to return to fundamentals such as milder weather, lower heating demand, ample storage, and little change in LNG supply.
According to LSEG meteorologist Georg Mueller: “Dry and moderately warm weather is expected across Europe around or somewhat above normal for at least the next 10 days.”
Meanwhile, LSEG analyst Timothy Crump said demand in northwest Europe fell 9% on Tuesday (April 30), more than offsetting the impact of lower flows from Norway due to maintenance.
Data from Gassco showed that both the Troll field and the Kollsnes processing plant started planned maintenance over the weekend, cutting supplies by 85 million cubic meters (mcm) per day.
However, Norway’s Hammerfest LNG plant restarted production on Saturday (April 27) after a gas leak last week.
According to data from the European Gas Infrastructure, European gas storage facilities remain at record high levels of around 62%.
