Global Gas Prices Reach Record Highs Amid Supply Shortages

19:16; 05 February 2026 year

### Russian Natural Gas Pricing Driven by Global Markets 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 TTF Gas hub in the Netherlands. 1. **American Market (Henry Hub):** - **Current Price:** Dropped to $3.5 per million BTU (British Thermal Units) on Thursday. 2. **European Market (TTF):** - **Current Price:** Adjusted to $417 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 United States, traded on the New York Mercantile Exchange. The pricing unit is British Thermal Units (BTU). To convert the price to 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 gas. ### **TTF - European Gas** TTF stands for Title Transfer Facility, which is the primary benchmark for gas prices in Europe. It is a virtual trading platform for gas. ### **Pricing Mechanisms** Global gas pricing mechanisms are diverse, including: - **Exchange Trading:** Competitive pricing, as seen on TTF in Europe. - **Oil Indexation:** Linking gas prices to oil prices. - **Regulated Prices:** Prices set by government regulations. - **Direct Contracts:** Prices determined by supply and demand, influencing global benchmarks such as gas, oil, and coal prices. Russian gas prices, particularly for export markets, have traditionally been heavily dependent on oil-indexed contracts. However, they are now increasingly influenced by spot markets and competitive mechanisms, although the link to energy prices remains. **Overview provided by Alexey Grishchenko**, Ph.D., Professor at the Department of Operational and Sectoral Management, Higher School of Management, Financial University under the Government of the Russian Federation.

Investment

Events

Niches and markets

Technologies and trends

Development infrastructure