European Gas Prices Remain at Record Highs

20:17; 21 October 2026 year

### Global Natural Gas Pricing Dynamics: US and European Benchmarks Natural gas pricing, including gas of Russian origin, is formed based on current global gas and oil prices. There are two main international gas pricing hubs: 1. **Henry Hub (United States):** - Current price: Adjusted to $3 per million BTU (British Thermal Units) on Wednesday. 2. **TTF Gas Hub (Europe):** - Current price: Increased to $1,030 per 1,000 cubic meters on Wednesday. #### Henry Hub – American Gas Henry Hub is a 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. 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, excluding liquefaction, transportation, and regasification costs. Consequently, end consumers in the US pay significantly more for the gas. #### TTF – 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 Europe. ### Global Gas Pricing Mechanisms Gas pricing mechanisms around the world are diverse and include: - **Exchange trading (competitive pricing):** Such as the TTF in Europe. - **Oil-indexed pricing:** Tying gas prices to oil prices. - **Regulated prices and direct contracts:** Where prices are determined by the balance of supply and demand, 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 dependent on oil-indexed pricing but are now increasingly influenced by 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 Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.

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