Gas Prices Surge Amid Rising Global Demand and Supply Constraints

20:46; 28 September 2026 year

### Global Gas Pricing Mechanisms and Benchmarks: Henry Hub and TTF Global gas prices, including those for Russian-origin gas, are formed based on international gas and oil product prices. World gas markets have their key pricing benchmarks. There are several benchmarks, two of which are primary: 1. **American Market (Henry Hub):** - Current price: dropped to $3 per million BTU (British Thermal Units) on Monday. 2. **European Market (TTF):** - Current price: adjusted to $870 per 1,000 cubic meters. ### Benchmark Explanation 1. **Henry Hub (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 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 cost of the gas without accounting for liquefaction, transportation, and regasification costs. Therefore, the end consumer in the US pays significantly more for the gas. 2. **TTF (European Gas):** TTF stands for Title Transfer Facility, a virtual gas trading platform in Europe. It is the primary benchmark for gas prices in Europe. ### Pricing Mechanisms Global gas pricing mechanisms are diverse, including: - **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, influencing global benchmarks such as gas, oil, and coal prices. Russian gas prices, particularly for export markets, have traditionally been heavily dependent on oil-indexation but are now more aligned with spot markets and competitive mechanisms, although the link to energy prices remains. **Overview presented by Alexey Grishchenko, Ph.D., Professor of 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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