European Gas Prices Remain at Record Highs

20:34; 11 November 2026 year

### Natural Gas Pricing: Global Benchmarks and Their Impact on Russian Gas Exports Natural gas prices, including those of Russian origin, are determined by current global gas and oil prices. There are two primary international benchmarks for natural gas pricing: 1. **Henry Hub (United States)**: - Current price: Adjusted to $3.3 per million BTU (British Thermal Units) on Wednesday. 2. **TTF (Europe)**: - Current price: Increased to $1,000 per 1,000 cubic meters on Wednesday. ### Explanation of Benchmarks 1. **Henry Hub**: This is a physical gas distribution hub located in Louisiana, USA. It serves as the primary benchmark for natural gas prices in the United States, traded on the New York Mercantile Exchange (NYMEX). 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 only the raw cost of the gas, excluding liquefaction, transportation, and regasification costs. Therefore, end consumers in the US pay significantly more. 2. **TTF**: The Title Transfer Facility is the main benchmark for gas prices in Europe. It is a virtual trading platform for gas transactions. ### Global Pricing Mechanisms Global gas pricing mechanisms are diverse and include: - **Exchange-based trading**: Competitive pricing, as seen on the TTF in Europe. - **Oil-indexation**: Linking gas prices to oil prices. - **Regulated prices**: Prices set by governments. - **Direct contracts**: Prices determined by 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 influenced by oil-indexation but are now more aligned with spot markets and competitive mechanisms, although a correlation with energy prices remains. This overview was prepared by Alexey Grishchenko, Doctor of Economics, 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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