Physically the Henry hub is located in Erath, Louisiana, USA and belongs to the Sabine Pipeline LLC.
Future and spot prices set at Henry hub are denominated in $/mbtu (million of British thermal units) and are generally seen to be the primary price set for the North American natural gas market.
North American unregulated wellhead and burner-tip natural gas prices are closely correlated to those set at Henry Hub.
The area surrounding the Henry hub was affected by the flooding and storm surge from hurricanes but the facility suffered minimal damage.
In 2011, the Henry Hub was the site of a land dispute, in which Sabine, a subsidiary of Chevron, sued to condemn land near the site of the hub, and expropriate it from the Broussard family, who had owned it for generations, arguing that it was acting in the national interest.
Natural gas is priced and traded at different locations throughout USA.
These locations, referred to as market hubs, exist across the USA and are located at the intersection of major gas pipeline systems.
There are over 30 major market hubs in the USA, the principle of which is known as the Henry Hub, located in Louisiana.
The futures contracts that are traded on the NYMEX are Henry Hub contracts, meaning they reflect the price of natural gas for physical delivery at this hub.
The price at which natural gas trades differs across the major hubs, depending on the supply and demand for natural gas at that particular point.
The difference between the Henry Hub price and another hub is called the location differential.
In addition to market hubs, other major pricing locations include citygates.
Citygates are the locations at which distribution companies receive gas from a pipeline.
Citygates at major metropolitan centers can offer another point at which natural gas is priced.