Global Gas Market Overview: Current Situation and Trends

18:52; 13 May 2026 year

### Global Natural Gas Pricing Dynamics: Henry Hub and TTF Benchmarks Natural gas prices, including those of Russian origin, are formed based on current global gas and oil prices. There are two main international benchmarks for natural gas pricing: 1. **Henry Hub (USA)**: - Current price: Adjusted to $2.8 per million BTU (British Thermal Units) on Wednesday. 2. **TTF (Europe)**: - Current price: Increased to $561 per 1,000 cubic meters on Wednesday. ### Understanding the Benchmarks 1. **Henry Hub**: - This is a physical gas distribution hub located in Louisiana, USA. It serves as the benchmark for natural gas prices in the US, traded on the New York Mercantile Exchange (NYMEX). The price is measured in BTUs. 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. Therefore, end consumers in the US pay significantly more. 2. **TTF**: - The Title Transfer Facility is the primary benchmark for gas prices in Europe. It is a virtual trading platform for gas transactions. ### Pricing Mechanisms Global gas pricing mechanisms are diverse: - **Exchange trading**: Competitive pricing, as seen on TTF in Europe. - **Oil-indexation**: Linking gas prices to oil prices. - **Regulated prices**: Prices set by government intervention. - **Direct contracts**: Prices determined by supply and demand, influenced by global benchmarks including gas, oil, and coal prices. Russian gas prices, particularly for export markets, have traditionally been heavily influenced by 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, Faculty of Higher School of Management, Financial University under the Government of the Russian Federation.

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