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Henry Hub

What does Henry Hub mean?

The Henry Hub, located in southern Louisiana, is the most active place for trading physical U.S. natural gas. Henry Hub is a benchmark for U.S. gas futures. Traders around the world look to a spot in Henry Hub for the best price of U.S. natural gas. 

Futures Knowledge Explains Henry Hub

The Henry Hub connects to more than a dozen on- and offshore pipelines from Texas and the Gulf of Mexico. On an average, 240,000 million British thermal units (mmBtu) per day of natural gas is physically traded here. But with boom of shale gas in Pennsylvania in recent years, another hub, the Dominion South hub, is gradually become more popular.

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