Henry Hub (HH) – Definition and Pronunciation
What is Henry Hub?
Henry Hub (HH) is the biggest unified point for natural gas spot and futures trading in the United States. The New York Mercantile Exchange (NYMEX) uses Henry Hub as the notional point of delivery for its natural gas futures contract. Henry Hub is based on the physical interconnection of nine interstate and four intrastate pipelines in Louisiana.
Examples of Henry Hub
In North America, a main index is Henry Hub, a distribution hub in South Louisiana that lends its name to the pricing point for traded natural gas futures contracts.
From “Analyzing the Dynamics of LNG Pricing: Regional Markets, Indexation, and Recent Challenges”.
Henry Hub is a point on the natural gas pipe system in Erath, Louisiana, that is used as the pricing point for the majority of natural gas futures contracts traded on the NYMEX. Spot and future prices set at Henry Hub are denominated in US$ per millions of British Thermal Units (MMBTU).
From “Liquefied Natural Gas Commercial Considerations”.
Shorter-term contracts with flexible volumes at prices indexed to the regional gas benchmark prices (e. g., Henry Hub in the United States; NBP in the United Kingdom), not oil prices, and with no specified floor price are favored in those markets (Wood and Mokhatab, 2006a; Wood et al.,2008b).
From “Liquefied Natural Gas Projects, calculation of the cost of gas production”.
Pronunciation of Henry Hub
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