Gas Prices Surge Amid Rising Demand and Supply Constraints

19:16; 07 May 2026 year

### Global Natural Gas Benchmarks: Henry Hub and TTF Gas Hub Two key international centers determine the price of natural gas: Henry Hub in the United States and the TTF Gas Hub in the Netherlands. 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 $564 per 1,000 cubic meters. ### Understanding the Benchmarks 1. **Henry Hub – American Gas:** Henry Hub is a physical gas distribution hub located in Louisiana, USA. It serves as the benchmark for natural gas prices in the U.S., traded on the New York Mercantile Exchange (NYMEX). 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’s important to note that this price reflects the raw cost of the gas, excluding liquefaction, transportation, and regasification costs. Consequently, end consumers in the U.S. pay significantly more. 2. **TTF – European Gas:** TTF stands for Title Transfer Facility, a virtual trading platform for gas in Europe. It is the primary benchmark for gas prices across the continent. ### Mechanisms of Gas Pricing Gas pricing mechanisms around the world are diverse, including: - **Exchange Trading:** Competitive pricing, as seen on TTF in Europe. - **Oil Indexation:** Linking gas prices to oil prices. - **Regulated Prices:** Government-controlled prices. - **Direct Contracts:** Prices determined by supply and demand, influencing global benchmarks and the cost of alternative fuels (gas, oil, coal). Russian gas prices, particularly for export markets, have traditionally been heavily influenced by oil prices 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, Doctor of Economics, 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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