Global Gas Market: Overview

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The pricing of Russian natural gas depends on global gas and oil prices. The main global gas price benchmarks are listed below (Henry Hub - USA, TTF hub in the Netherlands).

1. American market (Henry Hub):

- Current price: dropped to 4.5 USD per million BTU (British Thermal Units) on Friday.

2. European market (TTF):

- Current price: corrected to 368 USD per 1000 cubic meters.

It should be noted that the American market (Henry Hub) is:

- The basic price indicator for the USA,

- Conversion to cubic meters can be done with a coefficient of 35.8 (≈104 USD per 1000 cubic meters).

The final price for consumers in the USA is significantly higher due to additional costs (liquefaction, transportation).

The European market (TTF) is:

- The largest European hub in the Netherlands,

- Annual turnover: 20 trillion cubic meters (14 times higher than the internal needs of the EU).

On the Moscow Exchange, gas contracts with the ticker symbols NG-11.25 are used as a price benchmark.

It is worth noting the pronounced seasonality of demand (peak consumption in winter), a decrease in gas consumption in the EU - late spring and summer. At the same time, Russian gas prices correlate with the above-mentioned global indicators.

The review was presented by Alexey Grishchenko, Doctor of Economics, Professor of 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.