Europe, US Gas Markets Face Supply Crunch Amid Rising Demand and Geopolitical Tensions

19:38; 22 January 2026 year

### Russian Natural Gas Prices Track Global Benchmarks The price of Russian natural gas is determined based on current global gas and oil prices. There are two key international hubs where gas prices are formed: Henry Hub in the United States and the Dutch TTF Gas hub. #### 1. American Market (Henry Hub): - **Current Price**: Thursday saw a drop to $5.4 per million BTU (British Thermal Units). #### 2. European Market (TTF): - **Current Price**: Adjusted to $485 per 1,000 cubic meters. #### **Henry Hub - American Gas**: Henry Hub is a gas distribution hub located in Louisiana, USA. It serves as the benchmark for natural gas prices in the U.S., traded on the New York Mercantile Exchange. The unit of measurement is British Thermal Units (BTU). To convert the price to an equivalent of 1,000 cubic meters, a factor of 35.8 is used. It is important to note that this price reflects the raw cost of the gas, excluding liquefaction, transportation, and regasification costs. Consequently, consumers in the U.S. pay significantly more for the gas. #### **TTF - European Gas**: TTF stands for Title Transfer Facility, which is the main benchmark for gas prices in Europe. It is a virtual trading platform for gas. It is worth noting that gas pricing mechanisms worldwide are diverse. They include: - **Exchange trading**: Competitive pricing, as seen on TTF in Europe. - **Oil-indexed pricing**: Linking gas prices to oil prices. - **Regulated prices**: Government-set prices. - **Direct contracts**: Prices determined by supply and demand balance, influenced by global benchmarks including gas, oil, and coal prices. Historically, Russian gas prices, especially for export markets, have been heavily influenced by oil-indexed pricing. However, they are now more aligned with spot markets and competitive mechanisms, although the link to energy prices remains. This overview was provided by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management at the Higher School of Management of the Financial University under the Government of the Russian Federation.

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