The pricing of Russian natural gas is dependent on global gas and oil prices. The main global price benchmarks for gas are as follows (Henry Hub in the USA, TTF hub in the Netherlands).
1. American market (Henry Hub):
- Current price: rose to 5 USD per million British thermal units (MMBtu) on Friday.
2. European market (TTF):
- Current price: dropped to 325 USD per 1,000 cubic meters.
Note that the American market (Henry Hub) is:
- The basic price indicator for the United States,
- Conversion to cubic meters can be done using a factor of 35.8 (approximately 104 USD per 1,000 cubic meters).
The final price for consumers in the United States 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 greater than the internal needs of the EU).
The price benchmarks on the Moscow Exchange are represented by contracts with ticker symbols NG-11.25.
It is noted that there is a clear seasonality in demand (peak consumption in winter), a decrease in gas consumption in the EU - the end of spring and summer. Russian gas prices correlate with the aforementioned global indicators.
The review was presented by Alexey Grishchenko, Ph.D., Professor of the Department of Operational and Industry Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.