Global Gas Market Faces Supply Disruptions Amid Rising Demand

19:16; 06 August 2026 year

### Two Key International Hubs Shape Natural Gas Prices: Henry Hub in the US and TTF Gas in Europe 1. **American Market (Henry Hub):** - Current price: Dropped to $2.8 per million BTU (British Thermal Units) on Thursday. 2. **European Market (TTF):** - Current price: Adjusted to $670 per 1,000 cubic meters. ### Explanation of Benchmarks 1. **Henry Hub – American Gas:** Henry Hub is a natural gas distribution hub located in Louisiana, USA. It serves as the benchmark for natural gas prices in the United States, 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. Consequently, the final price paid by consumers in the US is significantly higher. 2. **TTF – European Gas:** TTF stands for Title Transfer Facility, which is the main benchmark for gas prices in Europe. It is a virtual trading platform for gas transactions. ### Global Gas 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 regulations. - **Direct Contracts:** Prices determined by supply and demand, influencing global benchmarks, including gas prices and the cost of alternative fuels (gas, oil, coal). Historically, Russian gas prices, especially for export markets, have been heavily dependent on oil-indexed contracts. However, they are now increasingly influenced by spot markets and competitive mechanisms, although the link to energy prices remains. **Reviewed by:** Alexey Grishchenko, Ph.D., Professor at the Department of Operations and Industry Management, Faculty of "Higher School of Management", Financial University under the Government of the Russian Federation.

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