Gas Prices See Mixed Trends Amid Global Market Volatility

18:17; 29 July 2026 year

### Natural Gas Pricing Dynamics: Global Benchmarks and Their Impact on Russian Gas Exports Global natural gas prices, including those for Russian gas, are formed based on current international gas and oil prices. There are two main international benchmarks for natural gas pricing: Henry Hub in the United States and the Dutch TTF Gas hub. #### 1. American Market (Henry Hub): - **Current Price**: A correction on Wednesday to $2.6 per million BTU (British Thermal Units). #### 2. European Market (TTF): - **Current Price**: An increase on Wednesday to $700 per 1,000 cubic meters. #### Henry Hub - American Gas Benchmark: Henry Hub is essentially a gas distribution hub located in Louisiana, USA. This benchmark plays a leading role in shaping natural gas prices in the United States, 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. Consequently, the end consumer in the US pays significantly more for the gas. #### TTF - European Gas Benchmark: TTF stands for Title Transfer Facility, which is a virtual trading platform for gas in Europe. This benchmark is the primary reference point for gas prices in Europe. #### Global Pricing Mechanisms: Global gas pricing mechanisms are diverse and include: - **Exchange Trading**: Competitive pricing, as seen on TTF in Europe. - **Oil Indexation**: Linking gas prices to oil prices. - **Regulated Prices**: Government-controlled pricing. - **Direct Contracts**: Prices determined by the balance of supply and demand, influenced by 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 indexation, but now they are more aligned with spot markets and competitive mechanisms, although the link to energy prices remains. This overview was prepared by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.

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