gasmarket

Gas market refers to the system for trading natural gas and related energy commodities, spanning production, transmission, storage, trading, and consumption. It includes physical markets for delivery and financial markets for price risk management.

Pricing is centered on hubs and price indices. Examples: Henry Hub (US), NBP (UK), TTF (Netherlands), JKM (Asia). These hubs provide liquidity for spot trades and serve as reference for many contracts. Gas prices are often determined by a mix of short-term spot trades and long-term bilateral supply agreements; liberalization has increased price formation and competition in many regions.

Market structure varies by region but common features include transmission networks operated by regulated or semi-regulated entities ensuring non-discriminatory access, and market participants including producers, traders, utilities, and consumers. LNG markets broaden the geography, with cargoes moving based on price signals, supply-demand balances, and capacity constraints at regasification terminals.

Major players include energy companies, specialized gas traders, and energy exchanges offering futures and options. Risk management, price discovery, and liquidity depend on storage, pipeline capacity, and regulatory certainty. Geopolitics and weather also affect supply and demand.

Trends include continued integration of regional markets through LNG, the expansion of market-based pricing in formerly regulated regions, and ongoing debates about energy security and decarbonization, with natural gas often positioned as a transition fuel.