Natural gas is often priced on the local market where it is transported, because natural gas transport is more expensive than oil transport. A normal cubic metre of natural gas is equal to 37.2 standard cubic feet. The price of natural gas is listed in USD per thousand cubic feet (USD/MCF) or in Euro per thousand cubic metres (Euro/MCM). The price is determined in part by the energy content. The term barrel of oil equivalent (BOE) has been introduced to enable a comparison of the value of oil and natural gas. One barrel of oil equivalent is equal to the energy content of one barrel of oil and is equal to the energy content of 6,000 cubic feet of natural gas. The World Bank Group forecasts an average price of European natural gas of approximately 11.5 USD/MCF in 2014.
Figure 8. Natural gas price 1980–2020 (forecast).
Source: The World Bank Group (2013).