What is the Henry Hub futures contract?

The Henry Hub futures contract is one of the most traded natural gas futures contracts in the world due to its price transparency and robust liquidity. As the delivery point for Henry Hub futures, the Henry Hub ‒ located in Erath, Louisiana ‒ is a nexus of several interconnections with interstate and intrastate pipelines and related infrastructure.

What is Henry Hub natural gas?

As the delivery point for Henry Hub Natural Gas futures, the Henry Hub, located in Erath, Louisiana, is a nexus of several natural gas interconnections. Here you will find interstate and intrastate pipelines, as well as other related infrastructure.

What is Henry Hub & how does it work?

Henry Hub is also used in delivery contracts for LNG on a global basis, despite being a spot price for natural gas that is very specific to the North American gas market. Some global gas producers like Qatar and Australia prefer to base the pricing mechanism of their natural gas deliveries on spot prices rather than indexing to the price of oil.

What is the NYMEX contract for deliveries at Henry Hub?

The NYMEX contract for deliveries at Henry Hub began trading in 1990 and is deliverable 18 months in the future. The settlement prices at Henry Hub are used as benchmarks for the entire North American natural gas market and parts of the global liquid natural gas (LNG) market.