The global natural gas price index stood at 232.28 index points in February 2025. Natural gas prices increased by seven index points that month. The global price index takes into account indices from Europe, Japan, and the United States – some of the largest natural gas trading markets. The U.S. is the leading natural gas exporter in the world. Means of trading natural gas Liquefied natural gas (LNG) is the most common form of trading natural gas. Although piped gas is often the preferred choice for transportation between neighboring producing and consuming countries, seaborne trade as LNG has grown in market volume. This is in part thanks to high consumption in pipeline-inaccessible areas such Japan, Korea, and China, as well as the recent increase in LNG trade by European countries. Major natural gas price benchmarks The natural gas prices often used as global benchmarks are Europe’s Dutch TTF traded on the Intercontinental Exchange, Indonesian LNG in Japan, and the U.S. Henry Hub traded on the New York Mercantile Exchange. 2022 was an especially volatile year for natural gas prices, as supply was severely constrained following sanctions on Russian imports. Other reasons for recent spikes in gas prices are related to issues at refineries, changes in demand, and problems along seaborne supply routes.

The average monthly price for natural gas in the United States amounted to 3.02 nominal U.S. dollars per million British thermal units (Btu) in December 2024. By contrast, natural gas prices in Europe were about four times higher than those in the U.S. Prices for Europe tend to be notably higher than those in the U.S. as the latter benefits from being a major hydrocarbon producer. Europe's import reliance European prices for natural gas rose most notable throughout the second half of 2021 and much of 2022, peaking at over 70 U.S. dollars per million Btu in August 2022. The sharp rise was due to supply chain issues and economic strain following the COVID-19 pandemic, which was further exacerbated by Russia’s invasion of Ukraine in early 2022. As a result of the war, many countries began looking for alternative sources, and Russian pipeline gas imports to the European Union declined as a result. Meanwhile, LNG was a great beneficiary, with LNG demand in Europe rising by more than 60 percent between 2021 and 2023. How domestic natural gas production shapes prices As intimated, the United States’ position among the leaders of worldwide natural gas production is one of the main reasons for why prices for this commodity are so low across the country. In 2023, the U.S. produced more than one trillion cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

Natural gas prices are the highest in the residential sector. In 2023, U.S. households paid an all time high average of 15.2 U.S. dollars per 1,000 cubic feet. Commercial natural gas costs were second-highest, while prices in the electric power sector were the lowest, at around four U.S. dollars on average. Prices for the industrial and electric power customers tend to be close to the wholesale electricity price. All sectors saw a year-on-year increase in natural gas prices in 2022 due to the decline in U.S. natural gas production in the first quarter of 2022, which resulted in high withdrawals of natural gas from storage and an increase in average natural gas prices. The growing natural gas market In recent years, the average natural gas prices for all sectors have been increasing in the United States. In 2022, the residential sector witnessed an increase in natural gas prices higher than 2008, while natural gas prices for other sectors were still lower despite increases in average natural gas prices for those sectors. Meanwhile, consumption of natural gas has increased more than any other fuel type following the 2008 Recession. Petroleum consumption has been more variable, and use of coal has significantly decreased. The price of coal and crude oil had already been increasing since the early 2000s, and was further exacerbated by the financial crisis. Around the same time, the cost of natural gas dropped significantly, making it a more viable economic alternative compared to other fossil fuels. This decrease was in part the result of drastically increased production of shale gas as a result of hydraulic fracturing and other techniques.

In 2024, the global natural gas price index stood at 167.43 index points. This was down from a peak of 521.58 in 2022. Natural gas prices increased significantly in the latter half of 2021 and throughout much of 2022 owing to greater power demand combined with supply constraints. This trend was also reflected in the monthly natural gas price index.

The state with the highest price of natural gas for industry in 2023 was Hawaii, standing at 28.4 U.S. dollars per thousand cubic feet, a decrease when compared to the previous year. During the same year, Texas had the lowest industrial natural gas price in the country, at 2.7 U.S. dollars per thousand cubic feet. Meanwhile, the average natural gas price for industry in the U.S. stood at 7.9 U.S. dollars per thousand cubic feet in 2022.

In the first half of 2022, the electricity prices for household end users (including taxes, levies, and VAT) in Germany increased by 0.01 euro cents per kWh (+14.29 percent) in the second half of 2021. With 0.08 euro cents per kWh, the electricity prices thereby reached their highest value in the observed period.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Germany with key insights such as natural gas prices for household end users incl. tax.

Global liquefied natural gas prices have shown less volatility in 2024 and 2025 than the years prior, with the benchmark price reaching 14.72 U.S. dollars per million metric British thermal units in February 2025. This figure represents an increase from the same period a year earlier. The global LNG benchmark, which is largely influenced by Asian market trading, particularly Indonesian LNG in Japan, serves as a key indicator for the industry's pricing trends. Natural gas prices become less volatile The Asian LNG market experienced less turbulence in 2023 compared to the previous year, with price volatility dropping to 75 percent. This relative stability followed an exceptionally volatile 2022, when LNG demand surged due to sanctions on Russian imports. The global natural gas price index, which encompasses European, Japanese, and American markets, stood at 207.9 index points in November 2024, showing an increase of nearly 20 points that month. This upward trend in natural gas prices contrasts with the comparatively lower crude oil price indices and follows greater heating demand in the winter months. Landed prices vis-à-vis export prices Due to its geographical location, Japan is exclusively reliant on LNG trading for its natural gas supply. As such, Japan's landed LNG spot price is often higher than for other markets, reaching approximately 10.05 U.S. dollars per million British thermal units in January 2024. By comparison, the world's largest LNG exporter, the United States, has seen its LNG export prices decrease to 7.57 U.S. dollars per thousand cubic feet in 2023, down from 12.24 U.S. dollars the previous year.

Winter natural gas prices in the United States are forecast to see a notable increase in 2022/23. U.S. consumers are expected to pay an average of 15.95 U.S. dollars per thousand cubic feet of natural gas. This would mean an increase of over two U.S. dollars and comes in the wake of many countries and regions currently embattled in an energy supply shortage.

The global fuel energy price index stood at 188.62 index points in January 2025, up from 100 in the base year 2016. Figures increased that month due to a rise in crude oil prices as a result of new sanctions on Russian oil and greater heating fuel demand. The fuel energy index includes prices for crude oil, natural gas, coal, and propane. Supply constraints across multiple commodities The global natural gas price index surged nearly 11-fold, and the global coal price index rose almost seven-fold from summer 2020 to summer 2022. This notable escalation was largely attributed to the Russia-Ukraine war, exerting increased pressure on the global supply chain. Global ramifications of the Russia-Ukraine war The invasion of Ukraine by Russia played a role in the surge of global inflation rates. Notably, Argentina bore the brunt, experiencing a hyperinflation rate of 92 percent in 2022. The war also exerted a significant impact on global gross domestic product (GDP) growth. Saudi Arabia emerged with a notable increase of nearly three percent, as several Western nations shifted their exports from Russia to Middle Eastern countries due to the sanctions imposed on the former.

Natural gas prices for household end users (including taxes, levies, and VAT) in France increased by 0.02 euros per kilowatt-hour throughout 2022. At 0.1 euros per kilowatt-hour, the gas prices thereby reached their highest value in the observed period.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about France with key insights such as electricity prices for household end users incl. tax.

In the first half of 2022, the electricity prices for household end users (including taxes, levies, and VAT) in Hungary did not change in comparison to the previous six months. The electricity prices for household end users (including taxes, levies, and VAT) remained at 0.03 euro cents per kWh.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Hungary with key insights such as natural gas prices for household end users incl. tax.

The electricity prices for household end users (including taxes, levies, and VAT) in Luxembourg increased significantly by 0.03 euro cents per kWh (+50 percent) in the first half of 2022. Therefore, the electricity prices in Luxembourg reached a peak in the first half of 2022 with 0.09 euro cents per kWh.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Luxembourg with key insights such as natural gas prices for household end users incl. tax.

In the first half of 2022, the electricity prices for household end users (including taxes, levies, and VAT) in Italy did not change in comparison to the previous six months. The electricity prices for household end users (including taxes, levies, and VAT) remained at 0.1 euro cents per kWh. Over the observed period, the electricity prices have been subject to fluctuation.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Italy with key insights such as natural gas prices for household end users incl. tax.

The electricity prices for household end users (including taxes, levies, and VAT) in Slovenia increased by 0.01 euro cents per kWh (+16.67 percent) in the first half of 2022. Therefore, the electricity prices in Slovenia reached a peak in the first half of 2022 with 0.07 euro cents per kWh.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Slovenia with key insights such as natural gas prices for household end users incl. tax.

The electricity prices for household end users (including taxes, levies, and VAT) in Austria increased by 0.01 euro cents per kWh (+14.29 percent) in the previous six months. With 0.08 euro cents per kWh, the electricity prices thereby reached their highest value in the observed period.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Austria with key insights such as natural gas prices for household end users incl. tax.

Prices for annual gas consumption for industry in Poland fluctuated slightly between 2008 and 2020. However, prices began to rise from the first half of 2021, reaching their peak in the second half of 2022 at more than 9.3 euro cents per kilowatt hour. The lowest annual price for gas consumption occurred in 2016, at 2.66 euros per kWh. In the second half of 2023, prices dropped to 7.68 euro cents per kilowatt hour.

Structure of natural gas supplies to Poland

Gas purchases from abroad, in the amount of 154.5 TWh, were supplemented with gas from domestic sources in the amount of 40 TWh. Total gas supplies from abroad in 2022 included imports and intra-Community acquisitions. Imports from the eastern direction, carried out under a long-term contract concluded between PGNiG S.A. and Gazprom, continued to account for a significant part of the total gas supplies from abroad. However, in 2022, the Polish government passed a resolution to terminate the agreement from 1993 with Gazprom on the supply of Russian gas to Poland. The consumption of natural gas in Poland increased between 2005 and 2022. Throughout 2023, PKN ORLEN (former PGNiG) imported approximately 14.1 bn m3 of natural gas to Poland. Domestic production amounted to 3.3 billion cubic meters.

Structure of LNG supply to Poland

PGNiG has successfully continued its strategy of becoming independent from one dominant supplier. In addition to the expansion of the LNG portfolio, the Company is preparing to start supplying the Polish market with gas produced on the Norwegian Continental Shelf, whose transport via the Baltic Pipe through the North Sea, Denmark, and the Baltic Sea will begin at the end of 2022.

The construction of the LNG Terminal in Świnoujście was a positive investment from the standpoint of supply security, enabling gas supplies from global gas markets. This investment has contributed to a fundamental change in the country's gas energy mix, thanks to which currently 1/3 of the country's gas consumption can be satisfied with LNG supplies. Thus, in 2023, imports from the East amounted to approximately 0.4 billion cubic meters, compared to around 10.3 billion m3 in 2016. LNG imports (from Qatar, Norway, and the USA) in 2023 increased and reached 6.5 billion cubic meters (after regasification), compared to 2016 when about one billion cubic meters of LNG was imported (after regasification).

In 2023, the price of natural gas in Europe reached 13.1 constant U.S. dollars per million British thermal units, compared with 2.5 U.S. dollars in the U.S. This was a notable decrease compared to the previous year, which had seen a steep increase in prices due to an energy supply shortage exacerbated by the Russia-Ukraine war. Since 1980, natural gas prices have typically been higher in Europe than in the United States and are expected to remain so for the coming two years. This is due to the U.S. being a significantly larger natural gas producer than Europe.

What is natural gas and why is it gaining ground in the energy market? Natural gas is commonly burned in power plants with combustion turbines that generate electricity or used as a heating fuel. Given the fact that the world’s energy demand continues to grow, natural gas was seen by some industry leaders as an acceptable "bridge-fuel" to overcome the use of more emission-intensive energy sources such as coal. Subsequently, natural gas has become the main fuel for electricity generation in the U.S., while the global gas power generation share has reached 22 percent.

How domestic production shapes U.S. natural gas prices The combination of hydraulic fracturing (“fracking”) and horizontal drilling can be regarded as one of the oil and gas industry’s biggest breakthroughs in decades, with the U.S. being the largest beneficiary. This technology has helped the industry release unprecedented quantities of gas from deposits, mainly shale and tar sands that were previously thought either inaccessible or uneconomic. It is forecast that U.S. shale gas production could reach 35 trillion cubic feet in 2050, up from 1.77 trillion cubic feet in 2000.

Natural gas prices for non-residential customers peaked in France during the global energy crisis in 2022. For an annual consumption of less than 100,000 gigajoules, the price stood at 6.84 euro cents per kilowatt-hour that year. Meanwhile, natural gas price for non-household users with an annual consumption between 100,000 and one million gigajoules stood at 6.65 euro cents per kilowatt-hour.

In Italy, the overall cost of natural gas was for vulnerable protected customers was approximately 122 euro cents per cubic meter in November 2024. The price of the raw material made up over 45 percent of the total natural gas expenditure of an Italian domestic consumer in the Vulnerable Protection Service. The cost of natural gas peaked in December 2022, when it reached 135 euro cents per cubic meter. Both taxes and transportation and gas meter management costs increased towards the end of 2023 and 2024. Until April 2023, system charges were reduced by the Italian government and contributed to make the total natural gas price less burdensome for domestic consumers.

In the first half of 2022, the electricity prices for household end users (including taxes, levies, and VAT) in Latvia increased by 0.01 euro cents per kWh (+25 percent) in the second half of 2021. With 0.05 euro cents per kWh, the electricity prices thereby reached their highest value in the observed period.The prices include gas basic price, transmission, system services, meter rental, distribution and other services.Find more statistics on other topics about Latvia with key insights such as natural gas prices for household end users incl. tax.