Again We Ask: Can Dominion South Replace Henry Hub as Benchmark?

More than four years ago MDN posed the question, could an alternate trading hub like Dominion South in Pennsylvania ever replace the venerable Henry Hub trading hub in Louisiana as the world benchmark (see Will ‘Dominion South’ Replace ‘Henry Hub’ for Natgas Pricing?). We said this at the time: “Will Dominion South or another northeast delivery point rise to become the new pricing benchmark–replacing the venerable Henry Hub? Probably not anytime soon. The Henry Hub is just so entrenched. But in time, who knows?” More than a year ago, in 2017, we brought you news that more and more gas traders are using northeast trading hubs, rather than Henry Hub (see Gas Traders Go After M-U’s Local Hubs for Higher Returns). And what’s this? A new article on Bloomberg that says the Marcellus/Utica is changing the way U.S. gas traders buy and sell–that traders do more business in our region than elsewhere. So once again we ask the question, Is Dominion South the new Henry Hub?

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