Gas Market Overview

19:29; 26 January 2026 year

### Global Gas Pricing Mechanisms, Including Russian Gas, Depend on World Prices Gas prices worldwide, including those for Russian gas, are formed based on global gas and oil product prices. World gas markets have their key pricing benchmarks. There are several reference indicators, two of which are primary: 1. **American Market (Henry Hub)**: - Current price: Adjusted to $6.2 per million BTU (British Thermal Units) on Monday. 2. **European Market (TTF)**: - Current price: Increased to $521 per 1,000 cubic meters. ### Key Benchmarks Explained 1. **Henry Hub**: - This is the main benchmark for natural gas prices in the U.S., located at the Henry Hub gas distribution hub in Louisiana. It plays a leading role in setting gas prices traded on the New York Mercantile Exchange. The measurement unit is British Thermal Units (BTU). To convert the price to an 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, excluding liquefaction, transportation, and regasification costs. Therefore, the end consumer in the U.S. pays significantly more for gas. 2. **TTF**: - This is the main benchmark for gas prices in Europe. TTF stands for Title Transfer Facility, which is a virtual gas trading platform. ### Diverse Pricing Mechanisms Global gas pricing mechanisms are diverse, including: - **Exchange trading** (competitive pricing, as on TTF in Europe) - **Oil-indexation** (linking gas prices to oil prices) - **Regulated prices** and **direct contracts**, where prices are determined by the balance of supply and demand, influencing global benchmarks such as gas prices and the cost of alternative fuels (gas, oil, coal). Russian gas prices, especially for export markets, have traditionally been heavily dependent on oil-indexation, but now they are more aligned with spot markets and competitive mechanisms, although the link to energy prices remains. This overview was presented by Aleksey Grishchenko, Doctor of Economics, 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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