About the situation on the global gas market

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The price of Russian natural gas depends on the conjuncture of world prices for gas and oil.

Identify two global hubs where natural gas prices are determined (Henry Hub and Dutch TTF Gas).

1. Natural Gas (NG).The reference price for gas at the Henry Hub gas storage facility in the USA, Louisiana.

Units of measurement are British Thermal Units (BTU). The current value is 3.2 USD per million BTU.

To transform this price into the values we are familiar with in 1000 m3, an indicative coefficient of 35.8 is used. I.e., the price tag we are familiar with is more than 110 dollars per 1000 m3. What is important to consider, these prices are net cost without the costs of liquefaction, transportation, regasification. As a result, the end user in the United States will pay much more for gas.

On the Moscow Stock Exchange, these are NG-12.25 futures, etc.

2. European gas is traded on European gas hubs. The most active gas exchange in Europe with a trading volume of about 20 trillion cubic meters of gas is DUTCH TTF NATURAL GAS. Dutch TTF Gas is the leading European benchmark price, as trading volumes are more than 14 times higher than the volumes of gas used by the Netherlands for domestic purposes.

The current quote (TTF Gas) is 524 USD per 1000 m3.

Note that natural gas markets are characterized by high seasonality of demand. It is associated with a high level of gas consumption during the winter heating season.