Henry Hub

Henry Hub is a natural gas pipeline junction in Louisiana whose price serves as the main benchmark for natural gas traded in the United States.

Henry Hub sits in Louisiana at the meeting point of more than a dozen interstate and intrastate natural gas pipelines, a location that made it a natural place for the market to settle on a single reference price. Its role is similar to what Dated Brent plays for crude oil: a specific, physical location whose price stands in for the broader market.

Henry Hub prices reflect North American gas market conditions specifically, and they can move quite differently from gas benchmarks elsewhere, such as TTF in Europe or JKM in Asia, because pipeline gas cannot move between continents. The growth of LNG export capacity from the US Gulf Coast has linked Henry Hub more closely to those overseas benchmarks than it once was, since gas can now leave the US market as a shipped cargo rather than only through pipelines.