How the Henry Hub Morphed from Domestic to International Benchmark

For over 30 years, the Henry Hub in Louisiana has served as the key anchor for natural gas pricing in the contiguous United States. Its role, however, has dramatically evolved over the last decade, primarily due to the rapid growth of U.S. LNG exports. Henry Hub has shifted from being a benchmark for U.S. natural gas to the primary index for global LNG cargo pricing. Consequently, the volume of physical gas exchanged at the hub is at its highest, and Henry Hub prices are now considered a premium compared to other domestic markets.

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