Henry Hub
The US natural gas pipeline hub in Louisiana whose prices serve as the main benchmark for US natural gas futures and contracts.
Henry Hub is a pipeline interconnection in Louisiana where several interstate pipelines meet. NYMEX natural gas futures are delivered there, so its price is the reference for much of the US gas market. Many LNG export and utility contracts are linked to it. Prices are quoted in dollars per MMBtu.
Traders care because Henry Hub is the input cost for US gas-fired power and for LNG export margins. Its moves feed through to utilities, power prices and the revenue of gas producers. Weather, storage levels and LNG feedgas demand are the main drivers to track.
Worked example (illustrative numbers, not real data): a utility buys 10,000 MMBtu at 3.00 dollars per MMBtu, or 30,000 dollars. If the price rises to 3.60 dollars, the same volume costs 36,000 dollars, an increase of 6,000 dollars.