On the Price Situation in the Global Gas Market

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Gas pricing mechanisms in the world, including gas of Russian origin, are formed based on global gas and petroleum product prices.

Global gas markets have their key price benchmarks. There are several reference indicators, two of which are primary:

1. American market (Henry Hub):

- Current price: Monday correction to 4.5 USD/million BTU (British Thermal Units).

2. European market (TTF):

- Current price: increase to 372 USD/1000 m³.

1. Henry Hub - American gas. This is actually the Henry Hub gas distribution hub in Louisiana. This benchmark plays a leading role in shaping natural gas prices in the United States, which are traded on the New York Stock Exchange. The unit of measurement is British Thermal Units (BTU). To convert the price into an equivalent of 1000 cubic meters, a conversion factor of 35.8 is used. It is important to note that this price reflects the pure cost of raw materials without taking into account the costs of liquefaction, transportation, and reverse regasification. Accordingly, the consumer in the USA pays significantly more for gas.

2. TTF - European gas. This is the main benchmark for gas prices in Europe. The name stands for Title Transfer Facility - a virtual gas trading platform.

Gas trading on TTF takes place mainly on DUTCH TTF NATURAL GAS. This exchange is the leader of the European gas market. About 20 trillion cubic meters of gas are sold annually on this exchange.

It is worth noting that on the Russian futures market (Moscow Exchange), futures on American gas are traded. Notably, since April 8, 2025, investors have had access to trade futures on European gas.

On the Moscow Exchange, such contracts are designated by the code NG-11.25 and similar combinations of numbers and letters.

Overview presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty "Higher School of Management" of the Financial University under the Government of the Russian Federation.