Henry Hub is the major U.S. natural-gas pricing hub in Louisiana.
The facility is located near Erath in Vermilion Parish and connects numerous interstate and intrastate pipelines. Because gas from many production regions can flow into the network, Henry Hub provides a widely used reference price for U.S. natural gas.
The New York Mercantile Exchange uses Henry Hub as the delivery point for its standard natural-gas futures contract. Futures prices therefore express expectations about supply, demand, storage, weather, and transport conditions across the U.S. market.
Henry Hub should not be confused with Mont Belvieu, Texas, which is a major hub for natural-gas liquids and petroleum-related products. Henry Hub is primarily associated with pipeline natural gas, not crude oil or liquefied petroleum gas.