Gas Market Under Pressure

19:00; 28 January 2026 year

### Global Natural Gas Pricing Dynamics: Russian Gas and Beyond The pricing of natural gas, including that of Russian origin, is determined based on current global gas and oil prices. There are two main international benchmarks for natural gas pricing: 1. **Henry Hub (United States)**: - Current price: rose to $6.4 per million BTU (British Thermal Units) on Wednesday. 2. **TTF (Europe)**: - Current price: rose to $480 per 1,000 cubic meters on Wednesday. #### Henry Hub – American Gas Benchmark Henry Hub is a physical gas distribution hub located in Louisiana, USA. It serves as the primary 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 the equivalent of 1,000 cubic meters, a conversion 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. Therefore, the final price paid by consumers in the U.S. is significantly higher. #### TTF – European Gas Benchmark TTF stands for Title Transfer Facility, a virtual trading platform for gas in Europe. It is the primary benchmark for gas prices in Europe. ### Global Gas Pricing Mechanisms Global gas pricing mechanisms are diverse and include: - **Exchange Trading**: Competitive pricing, as seen on the TTF in Europe. - **Oil Indexation**: Linking gas prices to oil prices. - **Regulated Prices**: Government-set prices. - **Direct Contracts**: Prices determined by supply and demand, influenced by global benchmarks such as gas, oil, and coal prices. Russian gas prices, particularly for export markets, have traditionally been heavily dependent on oil price linkages. However, they are now increasingly influenced by spot markets and competitive mechanisms, although the connection to energy prices remains significant. **Reviewed by Alexey Grishchenko**, Doctor of Economics, Professor at the Department of Operational and Sectoral Management, Faculty of "Higher School of Management", Financial University under the Government of the Russian Federation.

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