Natural Gas Henry Hub

Natural gas is an energy source used for home heating, electricity generation, industry and fertilizer production. Prices differ markedly from region to region, because gas is carried by pipelines or, once liquefied (LNG), by specialized ships, and this infrastructure separates the markets from one another.

The natural gas price shown on Lzzo.com is based on the US benchmark Henry Hub. Henry Hub is a distribution point in the state of Louisiana where many pipelines intersect, and it serves as the delivery location for the natural gas futures contract traded on NYMEX. The value comes from front-month contract (NG=F) data obtained via Yahoo Finance and is expressed in US dollars per million British thermal units (MMBtu).

Temperatures, storage levels, US production and LNG exports are the main factors affecting the Henry Hub price, which is why it is known for high volatility. Prices such as the European TTF or Asian LNG are formed under different conditions; consumer natural gas tariffs in Turkey are also set independently of this futures price.