Global Gas Market: Situation Overview

18:55; 01 April 2026 year

### Global Natural Gas Pricing Dynamics: US and European Benchmarks The pricing of natural gas, including that of Russian origin, is formed 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: Adjusted to $2.8 per million BTU (British Thermal Units) on Wednesday. 2. **TTF (Europe)**: - Current price: Increased to $570 per 1,000 cubic meters on Wednesday. ### **Henry Hub**: Henry Hub is the benchmark for natural gas prices in the United States. It is a physical hub located in Louisiana where gas is distributed and traded on the New York Mercantile Exchange. The pricing unit is BTU, and to convert it to 1,000 cubic meters, a 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. Therefore, the final price paid by consumers in the US is significantly higher. ### **TTF**: TTF stands for Title Transfer Facility, which is the primary benchmark for gas prices in Europe. It is a virtual trading platform where gas is traded. ### **Pricing Mechanisms**: Global gas pricing mechanisms are diverse and include: - **Exchange trading**: Competitive pricing, as seen on TTF in Europe. - **Oil-indexation**: Prices linked to oil prices. - **Regulated prices**: Government-set prices. - **Direct contracts**: Prices determined by 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 dependent on oil-indexation but 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 of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.

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