Gas Prices Surge Amid Global Energy Crisis

19:52; 25 May 2026 year

### Global Gas Pricing Mechanisms and Benchmarks Global gas prices, including those for Russian gas, are determined by international gas and oil product prices. ### Key Global Gas Benchmarks There are several benchmarks that serve as reference points for global gas markets. The two most important are: 1. **American Market (Henry Hub)**: - **Current Price**: Dropped to $2.8 per million BTU (British Thermal Units) on Monday. 2. **European Market (TTF)**: - **Current Price**: Adjusted to $555 per 1,000 cubic meters. ### **Henry Hub**: Henry Hub is the key benchmark for U.S. natural gas prices. It is located in Louisiana and serves as a physical hub for gas distribution. This benchmark is traded on the New York Mercantile Exchange (NYMEX) and uses BTU as its unit of measurement. To convert BTU to cubic meters, a factor of 35.8 is applied. It is important to note that the Henry Hub price reflects only the raw cost of gas, excluding liquefaction, transportation, and regasification costs. Therefore, end consumers in the U.S. pay significantly more for gas. ### **TTF**: TTF stands for Title Transfer Facility and is the main benchmark for European gas prices. It is a virtual trading platform where gas is traded in Europe. ### **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**: Prices set by government regulation. - **Direct Contracts**: Prices determined by supply and demand balance, influenced by global benchmarks including gas, oil, and coal prices. Russian gas prices, particularly for export markets, have traditionally been heavily influenced by oil price linkages. However, they are now increasingly influenced by 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 at the Higher School of Management, Financial University under the Government of the Russian Federation.

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