Global Gas Market Experiences Correction

19:24; 27 August 2026 year

### Global Gas Market Update Two key international hubs where natural gas prices are formed are the Henry Hub in the United States and the TTF Gas hub in the Netherlands. 1. **American Market (Henry Hub):** - **Current Price:** On Thursday, prices dropped to $2.8 per million BTU (British Thermal Units). 2. **European Market (TTF):** - **Current Price:** Prices have corrected to $790 per 1,000 cubic meters. --- ### Henry Hub – American Gas Henry Hub is a physical gas distribution hub located in Louisiana. It serves as the benchmark for natural gas prices in the U.S., traded on the New York Mercantile Exchange. The pricing unit is British Thermal Units (BTU). To convert the price to the equivalent of 1,000 cubic meters, a conversion factor of 35.8 is used. It’s important to note that this price reflects only the raw cost of the gas, excluding liquefaction, transportation, and regasification costs. Consequently, end consumers in the U.S. pay significantly more for gas. --- ### TTF – European Gas TTF stands for Title Transfer Facility, which is a virtual trading platform for gas in Europe. It is the primary benchmark for gas prices across the continent. --- ### Pricing Mechanisms Global gas pricing mechanisms are diverse, including: - **Exchange Trading:** Competitive pricing, as seen on TTF in Europe. - **Oil Indexation:** Prices linked to oil prices. - **Regulated Prices:** Government-set prices. - **Direct Contracts:** Prices determined by supply and demand balance, influencing 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 influenced by oil-indexation but are now 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 at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.

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