Today's gas prices recorded a slight increase of 0.21% in the world market to 4,266 USD/mmBTU. Information from Oilprice.com said that the global energy landscape has entered a transitional era when Europe decided to switch away from Russian natural gas, which has led to fierce supply competition...
According to the Oilprice.com website at 7:38 a.m. on January 17, 2025 (Vietnam time), the price of natural gas on the world market reversed and increased slightly by 0.21% to 4,266 USD/mmBTU for the natural gas contract for delivery in January 2025.
The global energy landscape has entered a period of transformation as Europe decides to shift away from Russian natural gas. Once the cornerstone of Europe’s energy supply, Russia now faces the economic and geopolitical consequences of losing its largest market.
New research published in the journal Nature Communications, led by Professor Michael Bradshaw of Warwick Business School and Steve Pye of UCL, explores the far-reaching implications of Russia’s shift towards Asian markets in a world increasingly shaped by energy diversification and sustainable development goals.
The article highlights the complexity of this adjustment. While Europe has succeeded in reducing its dependence on Russian gas, the region now faces new vulnerabilities linked to the global LNG market and growing competition from Asia.
As Professor Bradshaw explains, “While diversifying away from Russian gas is a security success story, it also brings new complexities. Europe’s energy security is now linked to developments in Asia through the global gas market.”
Russia’s efforts to secure the Asian market are facing challenges, with China emerging as the dominant gatekeeper. This dependence not only reduces Russia’s revenue potential, but also highlights the urgency for Europe to accelerate its renewable energy transition and strengthen intra-EU cooperation.
Russia’s dominance of Europe’s natural gas market began to unravel in late 2021, when Gazprom reduced supplies to the European spot market, triggering price spikes. The situation worsened with Russia’s invasion of Ukraine in 2022. By 2024, pipeline flows to Europe had plummeted to just 20% of pre-war levels. Key supply routes such as Nord Stream were idled due to sabotage and sanctions, while Gazprom’s insistence on paying in rubles further strained relations with European buyers.
The EU’s response has been swift. Initiatives such as REPowerEU aim to wean itself off Russian fossil fuels by 2027, and European countries have been quick to diversify their supply sources, increasing LNG imports from the United States, Qatar and Norway. While these measures have improved energy security in the short term, they have exposed Europe to price volatility and increased supply competition in the global LNG market.
For Russia, the shift to Asia, and China in particular, is both necessary and challenging. China’s industrial demand for natural gas continues to grow, but its energy strategy prioritizes diversification, leveraging domestic shale production and importing LNG along with Russian pipeline gas. This cautious approach limits Moscow’s ability to replace lost European revenues.
A prime example is the Power of Siberia 2 pipeline, which is expected to connect Siberian gas fields to China. Despite its strategic importance to Russia, the project is still under negotiation, highlighting Beijing’s leverage in dictating the terms. Even when completed, the pipeline will only partially make up for Russia’s lost market share in Europe.
As Russia accelerates its LNG ambitions to mitigate the loss of access to European pipeline gas, it faces significant hurdles. Sanctions targeting advanced technology and infrastructure have hampered its ability to compete in the global LNG market. Meanwhile, surging LNG demand in Asia is tightening market dynamics, creating volatility that affects both Europe and China.
If China prioritizes LNG imports over Russian pipeline gas, it could push up global prices, putting a strain on Europe’s energy transition efforts. This interplay between Asia and Europe underscores the interconnectedness of modern energy markets, where regional shifts have far-reaching consequences.
The study notes that Russia’s shift to Asia highlights the vulnerabilities of overreliance on single suppliers and underscores the need for diversified energy strategies. Europe’s focus on renewables and China’s cautious approach to Russian gas are reshaping the global energy landscape. However, these measures come with trade-offs, including increased competition for resources and market fragmentation.
For energy markets, this adjustment signals a new era of volatility. While nimble players may find opportunities, the risks for less prepared countries are enormous. For Russia, the pivot is more about survival than strategy, and it is unlikely to regain the economic and geopolitical influence it once held in Europe.
Russia’s diminished role in Europe and its tense shift to Asia mark the beginning of an era of fragmented and decentralized energy. For Europe, the challenge is to balance immediate energy security with long-term sustainable development goals. For China, it is to maintain leverage while ensuring supply diversity.
For investors and policymakers, the takeaway is clear: adaptability and diversification will define success in this rapidly changing energy landscape. As global markets adjust to new supply routes and geopolitical realities, those who can navigate the complexities of this transition will be best positioned to thrive.
Domestic gas prices
Petrolimex Gas Corporation said that the retail price of Petrolimex gas cylinders (including VAT) in January 2025 in the Hanoi market is 460,100 VND/12 kg household cylinder; 1,840,100 VND/48 kg industrial cylinder, respectively decreasing by 7,200 VND/12 kg cylinder and 29,100 VND/48 kg cylinder (including VAT).
According to Petrolimex Gas Corporation, the decrease in Petrolimex gas price in January 2025 is due to the average world gas price contract in January 2025 at 620 USD/ton, a decrease of 12.5 USD/ton compared to December 2024, so Petrolimex Gas Corporation made adjustments according to the corresponding decrease.
Gas South Joint Stock Company (Gas South) announced that its retail gas prices have been adjusted down to VND474,400/12kg cylinder and VND1,780,361/45kg cylinder (including VAT) in the Eastern and Western regions of the South. This price applies to gas brands such as Gas Dau Khi, VT - Gas, A Gas, Dang Phuoc Gas, Dak Gas and JP Gas.
In 2024, domestic retail gas prices increased 7 times, decreased 3 times and remained unchanged 2 times.
Source: https://baodaknong.vn/gas-price-hom-nay-17-1-dao-chieu-tang-nhe-240563.html
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