Henry Hub
The Henry Hub is a distribution hub on the natural gas pipeline system in Erath, Louisiana, owned by Sabine Pipe Line LLC. Due to its importance, it lends its name to the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX) and the OTC swaps traded on IntercontinentalExchange (ICE).
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.
In 2011, the Henry Hub was the site of a land dispute, in which Sabine, a subsidiary of Chevron, sued to condemn land near the site of the hub, and expropriate it from the Broussard family, who had owned it for generations, arguing that it was acting in the national interest. [3]
References [edit]
- ^ "Topic Report: Hurricane Ike Update". www.apachecorp.com. September 22, 2008. Retrieved 2008-10-16.[dead link]
- ^ "The Disaster Center's Tropical Storm – Hurricane Rita Page". www.disastercenter.com. October 6, 2005. Retrieved 2008-10-16.
- ^ "Bitter Twist in Louisiana Family’s Long Drilling Fight". New York Times. December 30, 2011. Retrieved 2011-12-30.
