Hub Henry is a distribution center for the natural gas pipeline system in Erath, Louisiana, owned by Sabine Pipe Line LLC, a subsidiary of EnLink Midstream Partners LP that buys assets from Chevron Corporation in 2014. Due to its importance, he lent his name to the price point for natural gas futures traded on the New York Mercantile Exchange (NYMEX) and OTC swaps traded on the Intercontinental Exchange (ICE).
It interconnects with nine interstate and four intrastate pipelines: Acadian, Columbia Gulf Transmission, Gulf South Pipeline, Bridgeline, NGPL, Sea Robin, Southern Natural Pipeline, Texas Gas Transmission, Transcontinental Pipeline, Trunkline Pipeline, Jefferson Island and Sabine. Both compressor stations can compress 520,000 decatherm/d (6.3 GW) Transport capacity is 1.8 billion ftÃ,³/d (bcf) (590 mÃ,³/s) (20.4 GW).
Future spot and natural gas prices set at Henry Hub are in the $/mmbtu currency (millions of UK thermal units) and are generally seen as the primary price set for the North American natural gas market. Unregulated wellhead prices in North America are closely correlated with those set at Henry Hub.
Video Henry Hub
History
The Henry Erath hub, named after Henry Erath's hamlet, stood there until it was damaged by floods and storm surges from Hurricane Ike and Rita, although natural gas facilities suffered minimal damage.
The school was named for the donor, William Henry, who originally immigrated from Germany as William Henry Kittenkat} around 1840, then dropped his surname. There is Henry's ancestry in the area to this day. It is common for donors to sponsor schools; there was another similar sponsored school in Vermilion Parish around that time.
Henry Hub began operations in the early 1950s when Stone and Webster, Inc. building an original facility with unions for The Texas Company (Texaco). The facility is manned by the International Union of Operating Engineers. In the 1960s, the Texas Company built and operated adjacent Sea Robin Plant facilities, without the use of unions under a work-force law that was implemented in Louisiana. In the 2000s, all unionized workers were replaced by contract laborers when Texaco and Chevron joined in October 2000.
NYMEX began offering standard natural gas contracts with delivery at Hub Henry in April 1990.
In 2011, Hub Henry was the site of a land dispute, in which Sabine sued to punish the land near the location of their hub, and took it from the Broussard family, who has owned it for generations, arguing that it acts in the national interest. The lawsuit was settled in 2012, and by 2013, the second lawsuit, the older one, was settled with Texaco (like Sabine, Chevron's company) for Broussard land lease that has been hired for years.
Maps Henry Hub
References
http://louisiana.hometownlocator.com/la/vermilion/henry.cfm
External links
- Sabine Site for Henry Hub
- Scheme for Henry Hub
- NG Futures are trading at CME/NYMEX
- Henry Hub's derivatives are traded on ICE
- Energy Information Administration, Weekly Gas Updates Shows Henry Hub's natural gas price
- Natural Gas Business Price
Source of the article : Wikipedia
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