European natural gas prices rise

European natural gas prices rose amid high demand and falling inventories. Experts said that domestic gas prices may continue to fluctuate slightly, depending on fluctuations in world prices and domestic demand.

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.

Gas prices in January 2025 are affected by seasonal factors and domestic consumption demand. Specifically, January is the time near Lunar New Year, the demand for gas in households and businesses increases sharply. Data from the Ministry of Industry and Trade shows that gas consumption in January increases by an average of 20-30% compared to other months. In addition, Vietnam depends on about 70% of imported gas sources, so domestic gas prices closely follow the world gas price trend.

Experts say that gas prices in January 2025 may continue to fluctuate slightly, depending on fluctuations in world prices and domestic consumption demand. January is the peak time for gas consumption, especially in households and businesses preparing for the Lunar New Year. However, with the slight downward trend of world prices, domestic gas prices are unlikely to increase dramatically during this period.

The gas price reduction on the first day of 2025 is a positive starting signal, helping people and businesses reduce the cost burden. In the context of high consumption demand during Tet, this is a timely move, bringing many practical benefits and contributing to market stability. However, with unpredictable fluctuations in the global energy market, consumers need to closely monitor to be proactive in their usage plans and manage their spending appropriately.

World gas prices

On the world market, recorded on Oilprice.com at 9:10 a.m. on January 29, 2025 (Vietnam time), the price of natural gas on the world market continued to decrease by 3.89% to 3,336 USD/mmBTU for the natural gas contract for delivery in January 2025.

Meanwhile, European natural gas prices are trading higher, boosted by strong demand and falling inventories. The benchmark Dutch transfer-of-title basis (TTF) contract rose 1.4% to 48.55 euros per megawatt hour.

Despite the increase, the contract has fallen about 3% over the past week, following the restart of Freeport's US liquefied natural gas (LNG) facility.

The European Union’s gas storage capacity is currently at 55.8% of capacity. Gas demand is also rising due to recent declines in wind power generation.

Analysts at DNB Markets, which recently saw a 0.58% increase, have stated that they expect high LNG imports to continue, as current levels are not enough to balance the European market and replenish inventories for the upcoming winter.

In other news, the European Commission is likely to delay the planned announcement date for a roadmap to phase out the last remaining fuels from Russia, including LNG, according to a Bloomberg report.

The delay in announcing the plan shows the continued dependence on Russian fuel in the European market.

Source: https://baodaknong.vn/gas-price-hom-nay-29-1-gia-khi-dot-tu-nhien-chau-au-tang-241511.html