Global Gas Market Overview: Current Situation and Trends

19:17; 25 March 2026 year

### Natural Gas Pricing: Global Benchmarks and Current Trends The pricing of natural gas, including that of Russian origin, is determined by current global gas and oil prices. There are two main international benchmarks for natural gas pricing: 1. **Henry Hub (United States)**: - Current price: Adjusted to $2.8 per million BTU (British Thermal Units) on Wednesday. 2. **TTF (Europe)**: - Current price: Increased to $605 per 1,000 cubic meters on Wednesday. ### Understanding the Benchmarks 1. **Henry Hub**: This is the benchmark for U.S. natural gas prices. Henry Hub is a physical hub located in Louisiana, where natural gas is traded on the New York Mercantile Exchange (NYMEX). The price is quoted in BTUs, and to convert it to a price per 1,000 cubic meters, a conversion factor of 35.8 is used. It’s important to note that this price reflects only the raw cost of gas, excluding liquefaction, transportation, and regasification costs. Thus, the final consumer price in the U.S. is significantly higher. 2. **TTF**: The Title Transfer Facility (TTF) is the primary benchmark for European gas prices. It is a virtual trading platform where gas is traded in euros per megawatt-hour (MWh). Prices here are highly influenced by supply and demand dynamics. ### Pricing Mechanisms Global gas pricing mechanisms vary widely. They include: - **Exchange trading**: Competitive pricing, as seen on TTF in Europe. - **Oil-indexed pricing**: Prices linked to oil prices. - **Regulated prices**: Government-set prices. - **Direct contracts**: Prices determined by the balance of supply and demand, influenced by global benchmarks and the cost of alternative fuels like gas, oil, and coal. Russian gas prices, particularly for export markets, have traditionally 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 presented by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management, Faculty of Higher School of Management, Financial University under the Government of the Russian Federation.

Investment

Events

Niches and markets

Technologies and trends

Development infrastructure