Henry Hub
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Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC.
It interconnects with nine interstate and four intrastate pipelines: Acadian, Columbia Gulf Transmission, Gulf South Pipeline, Bridgeline, NGPL, Sea Robin, Southern Natural Pipeline, Texas Gas Transmission, Transcontinental Pipeline, Trunkline Pipeline, Jefferson Island, and Sabine. The two compressor stations can compress 520,000 decatherm/d (6.3 GW) . The transportation capacity is 1.8 billion ft³/d (bcf) (590 m³/s) (20.4 GW) (Sabine Pipe Line, LLC, 2000).
Spot and future prices set at Henry Hub are denominated in $/mmbtu (millions of British thermal units) and are generally seen to be the primary price set for the North American natural gas market. North American unregulated wellhead and burnertip natural gas prices are closely correlated to those set at Henry Hub.
The area surrounding the Henry Hub was affected by the flooding and storm surge from Hurricanes Ike[1] and Rita[2], but the facility suffered minimal damage.
[edit] External links
- Sabine's site for Henry Hub
- Schematic for Henry Hub
- Henry Hub Natural Gas Price Daily Report Outdated
- Henry Hub Natural Gas Business News for USA Broken
[edit] References
- ^ "Topic Report: Hurricane Ike Update". www.apachecorp.com. September 22, 2008. http://www.apachecorp.com/explore/explore_features/browse_archives/View_Article/?docdoc=762. Retrieved 2008-10-16.
- ^ "The Disaster Center's Tropical Storm - Hurricane Rita Page". www.disastercenter.com. October 6, 2005. http://www.disastercenter.com/Tropical%20Storm%20-%20Hurricane%20-%20Rita.html. Retrieved 2008-10-16.
