European Gas Prices Surge Amid Global Market Turmoil

18:55; 25 August 2026 year

### Two Global Hubs for Natural Gas Pricing: Henry Hub in the US and TTF in Europe There are two key global benchmarks for natural gas pricing: Henry Hub in the United States and the Dutch TTF Gas hub in Europe. The price of natural gas, including Russian gas, is determined by current global gas and oil prices. 1. **US Market (Henry Hub)**: - **Current Price**: On Tuesday, prices rose to $2.7 per million BTU (British Thermal Units). 2. **European Market (TTF)**: - **Current Price**: Prices corrected to $820 per 1,000 cubic meters. ### 1. Natural Gas in the US (NG) The benchmark price for natural gas in the US is set at Henry Hub, located in Louisiana. ### 2. European Gas European gas trading primarily takes place on European gas hubs, with the largest being the Dutch TTF Natural Gas Exchange. This Dutch hub leads the European gas market due to its trading volume, which exceeds the internal gas needs of the Netherlands by more than 14 times. Approximately 20 trillion cubic meters of gas are traded annually. It is important to note that gas pricing mechanisms around the world are diverse. They include: - **Exchange trading** (competitive pricing, as seen on TTF in Europe) - **Oil-indexed pricing** (linking gas prices to oil prices) - **Regulated prices** and **direct contracts**, where prices are determined by the balance of supply and demand, influenced by global benchmarks such as 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-indexed pricing but are now more influenced by spot markets and competitive mechanisms, although the link to energy prices remains. This overview was presented by Alexei Grishchenko, Ph.D., Professor 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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