Global natural gas energy prices by region 2017-2030

Natural gas prices in Europe and Japan spiked in 2018, reaching 7.7 U.S. dollars per million British thermal unit (Btu) and 10.7 U.S. dollars per Btu, respectively. Spot prices for liquefied natural gas (LNG) in Asia have increased partially due to increases in U.S. LNG exports and additional new capacity from Australia and Qatar. Unexpectedly cold winters or warm summers may also drive price spikes as well as variance in supply. In the near future, increase in LNG capacity is expected to alter the composition of natural gas markets which have been mostly linked to oil prices in the past. Increased long-distance gas trade through the expansion of LNG tankers will also reduce price differences between regions. Natural gas prices depend on a range of supply and demand conditions like geopolitical circumstances, national energy sources, network costs, and tax levels.

Natural gas prices

Switzerland has one of the highest industrial natural gas prices in the world at 73.5 U.S. dollars per megawatts in comparison to the United States with an industrial gas price of 13.9 U.S. dollars per megawatt hour. Residential prices for natural gas are generally much higher at about 35 U.S. dollars per megawatt hour in the United States. In North America gas pricing is largely driven by trading at the Henry Hub, a distribution hub on the natural gas pipeline system in Louisiana. The European market is heavily influenced by the North European market, and hub pricing tends to be similar to oil prices.