Page 10 - ITAtube Journal 1 2026

Market information
Figure 3: Natural Gas price development as of 17th of March 2026
Source: Trading Economics.com
Some countries, such as Saudi Arabia,
offer electricity at around 40 €/MWh or
less. Unfavorable European regulations or
grid costs could widen the gap, prompting
the relocation of production to regions
with lower energy costs. The concentration
of energy-intensive industries at the start
of the production chain could have neg-
ative consequences for regions with high
electricity costs.
Natural gas remains a key energy source
that influences the steel tube market.
Demand for tubes is driven by gas explora-
tion and transportation. Despite efforts to
reduce CO₂ emissions, gas remains essen-
tial for many industrial processes.
The price of gas at the Henry Hub in the
US is very competitive, having declined to
around 3.0 USD/MMBtu (equivalent to 9.2
€/MWh) in March (see Figure 3). Despite
the recent war between the US/Israel and
Iran, the price of natural gas directly from
the pipeline has remained relatively low.
However, a significant increase in price can
be seen when comparing the price of LNG-
based natural gas received by Europe and
Asia since US and Israeli troops attacked
Iran on 28 February 2026 (see Figure 4).
Part of the additional cost of LNG arises
from processing costs, such as liquefac-
tion at −162 °C, transportation by ship and
re-evaporation. These processes incur an
additional cost of around 8–10 US USD/
MMBtu or 24,5-30 €/MWh. However, due
to the current blockade of the Strait of
Hormuz, LNG cannot currently be trans-
ported from Qatar, Saudi Arabia or the
United Arab Emirates to Asia or other
Figure 4: Natural Gas price TTF from LNG development as of 17th of March 2026
Source: Trading Economics.com
destinations. This just results in a price
increase of around 100% to $18/MMBtu or
€57/MWh — approximately 6 times higher
than the price of natural gas transported
by pipeline in the US, for example.
Regions such as Europe, which lack ade-
quate connections to international natural
gas pipeline networks, are now heavily
dependent on LNG. These regions face
significantly higher prices for LNG than for
pipeline gas.
These additional costs affect regions that
cannot access affordable pipeline gas,
making LNG a predominantly short-term10 ITAtube Journal April 2026