Henry Hub

Henry Hub is a natural gas distribution point located in Louisiana that serves as a standard benchmark for the price of natural gas in the United States. It functions as a virtual trading location where buyers and sellers agree on prices, which then influence natural gas prices nationwide. Think of it like a central marketplace for natural gas, providing a common reference point that helps industry participants make informed trading and supply decisions. The prices set at Henry Hub are widely used to determine the cost of natural gas contracts and futures, impacting energy markets and pricing strategies across the country.