U.S. Natural Gas Prices Continue Correction on Global Market Developments

19:40; 28 May 2026 year

### Two Key International Hubs for Natural Gas Pricing: Henry Hub and TTF There are two primary international hubs where natural gas prices are formed: Henry Hub in the U.S. and the Dutch TTF (Title Transfer Facility) hub. 1. **American Market (Henry Hub):** - **Current Price:** On Thursday, prices fell to $3 per million British Thermal Units (BTU). 2. **European Market (TTF):** - **Current Price:** Prices corrected to $570 per 1,000 cubic meters. ### Henry Hub – American Gas Henry Hub is a 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. The unit of measurement is British Thermal Units (BTU). To convert the price to 1,000 cubic meters, a factor of 35.8 is used. It is important to note that this price reflects only the raw cost of the gas, excluding liquefaction, transportation, and regasification costs. Therefore, end consumers in the U.S. pay significantly more for natural gas. ### TTF – European Gas TTF is the main benchmark for gas prices in Europe. It is a virtual trading platform for gas transactions. ### Global Gas Pricing Mechanisms Gas pricing mechanisms worldwide 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, influencing global benchmarks including gas prices and the cost of alternative fuels (gas, oil, coal). Russian gas prices, particularly for export markets, have traditionally been heavily dependent on oil-indexed pricing but are now increasingly influenced by spot markets and competitive mechanisms, although the link to energy prices remains. This overview was prepared by Alexey Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Faculty of Higher School of Management at the Financial University under the Government of the Russian Federation.

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