US Natural Gas Prices Surge Amid Global Market Volatility

18:24; 21 January 2026 year

### Natural Gas Pricing Dynamics: Impact of Global Benchmarks Global natural gas prices, including those of Russian origin, are determined based on current international gas and oil prices. There are two primary international benchmarks for natural gas pricing: 1. **Henry Hub (United States)**: - Current price: rose to $4.7 per million BTU (British Thermal Units) on Wednesday. 2. **TTF Gas (Europe)**: - Current price: rose to $423 per 1,000 cubic meters on Wednesday. ### Henry Hub: The American Benchmark Henry Hub is a physical gas distribution hub located in Louisiana, USA. It serves as the benchmark for natural gas prices in the United States, traded on the New York Mercantile Exchange (NYMEX). The pricing unit is BTU. To convert the price to the equivalent of 1,000 cubic meters, a conversion factor of 35.8 is used. It is important to note that this price reflects only the raw material cost and does not include liquefaction, transportation, or regasification costs. Therefore, the end consumer in the U.S. pays significantly more for the gas. ### TTF: The European Benchmark TTF stands for Title Transfer Facility, which is a virtual trading platform for gas in Europe. It is the primary benchmark for gas prices in the European market. ### Global Gas Pricing Mechanisms Global gas pricing mechanisms are diverse and include: - **Exchange trading**: Competitive pricing, as seen on TTF in Europe. - **Oil-indexation**: Prices linked to oil prices. - **Regulated prices**: Prices set by government regulations. - **Direct contracts**: Prices determined by the balance of supply and demand, influenced by global benchmarks and the cost of alternative fuels (gas, oil, coal). Russian gas prices, particularly for export markets, have traditionally been heavily dependent on oil-indexation but are now increasingly influenced by spot markets and competitive mechanisms, although the link to energy prices remains. This analysis was prepared by Alexei Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.

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