Global Gas Market Faces Supply Shortages Amid Rising Demand

18:33; 16 July 2026 year

### Global Natural Gas Hubs: Henry Hub and TTF Gas Two key international centers where natural gas prices are formed are Henry Hub in the United States and the Dutch TTF Gas hub. 1. **American Market (Henry Hub):** - **Current Price:** On Thursday, prices fell to $3.2 per million BTU (British Thermal Units). 2. **European Market (TTF):** - **Current Price:** Prices corrected to $650 per 1,000 cubic meters. **Henry Hub** is an American gas benchmark. It is essentially a gas distribution hub located in Louisiana. This benchmark plays a leading role in setting natural gas prices in the U.S., which are traded on the New York Mercantile Exchange. The unit of measurement is British Thermal Units (BTU). To convert the price to an equivalent of 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, consumers in the U.S. pay significantly more for gas. **TTF** stands for Title Transfer Facility, which is the main gas benchmark in Europe. It is a virtual trading platform for gas. It is worth noting that gas pricing mechanisms around the world are diverse. They include: - **Exchange Trading:** Competitive pricing, as seen on TTF in Europe. - **Oil Indexation:** Linking gas prices to oil prices. - **Regulated Prices:** Government-set prices. - **Direct Contracts:** Prices determined by supply and demand, influencing global benchmarks such as gas prices and the cost of alternative fuels (gas, oil, coal). Russian gas prices, especially for export markets, have traditionally been heavily influenced by oil-indexed contracts. However, they are now increasingly oriented towards 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 at the Higher School of Management, Financial University under the Government of the Russian Federation.

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