Global Gas Market Faces Supply Shortages Amid Rising Demand

20:24; 09 April 2026 year

### Russian Natural Gas Pricing: An Overview of Global Benchmarks 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 Dutch TTF Gas hub. 1. **American Market (Henry Hub)**: - **Current Price**: On Thursday, prices fell to $2.8 per million BTU (British Thermal Units). 2. **European Market (TTF)**: - **Current Price**: Adjusted to $552 per 1,000 cubic meters. **Henry Hub** is an American gas benchmark. It is essentially a gas distribution hub located in Louisiana. This benchmark plays a leading role in setting natural gas prices in the U.S., which are 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 material cost only, excluding liquefaction, transportation, and regasification costs. Therefore, the final price paid by U.S. consumers is significantly higher. **TTF** (Title Transfer Facility) is the main benchmark for gas prices in Europe. It is a virtual trading platform for gas. It is worth noting that gas pricing mechanisms around the world are diverse, including: - **Exchange trading**: Competitive pricing, as seen on TTF in Europe. - **Oil-indexed pricing**: Tying gas prices to oil prices. - **Regulated prices**: Government-set prices. - **Direct contracts**: Prices determined by supply and demand balance, affecting global benchmarks including gas prices and the cost of alternative fuels (gas, oil, coal). Historically, Russian gas prices, especially for export markets, have been heavily dependent on 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 prepared by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operations and Industry Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.

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