Global Gas Market Overview: Current Situation and Trends

18:21; 24 August 2026 year

### Global Gas Pricing Mechanisms: An Overview Gas prices worldwide, including those for Russian gas, are formed based on global gas and oil product prices. Global gas markets have their key pricing benchmarks. There are several benchmarks, two of which are the main ones: 1. **American Market (Henry Hub)**: - Current price: dropped to $2.7 per million BTU (British Thermal Units) on Monday. 2. **European Market (TTF)**: - Current price: fell to $790 per 1,000 cubic meters. 1. **Henry Hub** – American gas. This is a physical gas distribution hub located in Louisiana. It serves as the primary benchmark for natural gas prices in the US, 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 material cost only, excluding liquefaction, transportation, and regasification costs. Consequently, the final price paid by consumers in the US is significantly higher. 2. **TTF** – European gas. This is the main benchmark for gas prices in Europe. TTF stands for Title Transfer Facility, a virtual gas trading platform. 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, and direct contracts where prices are determined by the balance of supply and demand, which influences 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 presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.

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