Global Gas Market Overview: Situation Update

19:50; 03 June 2026 year

### Natural Gas Pricing Dynamics: Global Benchmarks and Their Impact on Russian Gas Exports Natural gas pricing, including that of Russian origin, is shaped by current global gas and oil prices. There are two primary international benchmarks for natural gas pricing: Henry Hub in the United States and the Dutch TTF (Title Transfer Facility) hub. #### 1. American Market (Henry Hub): - **Current Price**: Adjusted to $3.2 per million BTU (British Thermal Units) on Wednesday. #### 2. European Market (TTF): - **Current Price**: Increased to $590 per 1,000 cubic meters on Wednesday. #### **Henry Hub**: Henry Hub is an American gas benchmark. It is a physical gas distribution hub located in Louisiana, which plays a leading role in determining 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 conversion factor of 35.8 is used. It is important to note that this price reflects the raw cost of the gas, excluding liquefaction, transportation, and regasification costs. Therefore, the final price paid by U.S. consumers is significantly higher. #### **TTF**: TTF is the main benchmark for gas prices in Europe. It is a virtual trading platform where gas is traded. The Title Transfer Facility is located in the Netherlands. #### **Global Pricing Mechanisms**: Gas pricing mechanisms worldwide are diverse and include: - **Exchange Trading**: Competitive pricing, as seen on TTF in Europe. - **Oil Indexation**: Linking gas prices to oil prices. - **Regulated Prices**: Prices set by governments. - **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 correlation with energy prices remains. **Review by Alexey Grishchenko**, Doctor of Economics, Professor at the Department of Operational and Industry Management, Faculty of "Higher School of Management", Financial University under the Government of the Russian Federation.

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