What is the Henry Hub Spot Price?
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.
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August 5th, 2007 at 9:21 am
Amigo Energy has shown to be quite profitable in Texas with the hispanic community. You know they spent about 7 million dollars on sponsoring the jersies for The Dynamo soccer team. Wow! That’s a lot of money.
August 20th, 2007 at 3:56 am
Natural gas went lower yesterday and today as the hurricane missed Texas.
August 21st, 2007 at 1:21 pm
Thanks for the great article!