Natural gas prices

Gas prices rose in Europe, Asia and North America in 2017, but remain below the 10-year average. Over the past year, European and Asian have been supported by increasing oil, coal and carbon prices

Due to the growth in LNG trade, a growing integration can already be observed in global gas prices. The correlation between European prices and Asian spot LNG prices – represented by the Japan Korea Marker (JKM) – was quite high since the previous LNG wave over 2009-11.

But more recently, the correlation between these markets and US gas prices has also begun to increase, consistent with Henry Hub increasingly playing the role as the anchor price for global gas prices after the US started exporting LNG from the Lower 48 in early 2016. Indeed, JKM prices have over the past couple of years fluctuated within the range of US LNG short-run operating costs and its full-cycle costs.

Natural gas prices ($/mmBtu)

Natural gas prices ($/mmBtu)


Annual prices are given for benchmark natural gas hubs together with contracted pipeline and LNG imports. The benchmark hub prices incorporate US (Henry Hub), Canada (Alberta), Netherlands TTF index and the UK (NBP). Contract prices are represented by LNG imports into Japan, the Japan Korea Marker (JKM) and Average German Import Prices.

The prices for LNG and European border are calculated as CIF prices, where CIF = cost + insurance + freight (average freight prices) in US dollars per million British thermal units (Btu).

Related content