European Gas Prices Continue to Rise on Global Market Trends

19:43; 19 August 2026 year

### Natural Gas Pricing Dynamics: Russian Gas Reflects Global Market Trends The pricing of natural gas, including gas of Russian origin, is determined by current global gas and oil prices. There are two primary international benchmarks for natural gas pricing: 1. **Henry Hub (United States)**: - Current price: Adjusted to $2.7 per million BTU (British Thermal Units) on Wednesday. 2. **TTF (Europe)**: - Current price: Increased to $751 per 1,000 cubic meters on Wednesday. ### Henry Hub: The Benchmark for American Gas Henry Hub is a physical 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 (NYMEX). The unit of measurement is 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, end consumers in the US pay significantly more for natural gas. ### TTF: The Benchmark for European Gas TTF stands for Title Transfer Facility, a virtual trading platform for gas in Europe. It is the primary benchmark for gas prices in the European market. ### Global Gas Pricing Mechanisms Gas pricing mechanisms around the world are diverse and include: - **Exchange-based 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 supply and demand balance, influenced by global benchmarks and the cost of alternative fuels (gas, oil, coal). Russian gas prices, particularly for export markets, have traditionally been heavily influenced by oil-indexation but are now increasingly aligned with spot markets and competitive mechanisms, although the link to energy prices remains. This overview was prepared by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the Higher School of Management at the Financial University under the Government of the Russian Federation.

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