ConceptUS
US Henry Hub
Henry Hub, Louisiana; primary US natural gas pricing benchmark, basis for NYMEX gas futures.
Last refreshed: 22 May 2026 · Appears in 1 active topic
Key Question
What is the Henry Hub price gap with TTF, and does it explain why US LNG flows to Europe?
Timeline for US Henry Hub
#1118 May
Chemicals 62-68% as the new running floor
European Energy MarketsCommon Questions
- What is Henry Hub and why does it matter for gas prices?
- Henry Hub is the primary US natural gas pricing benchmark at Erath, Louisiana, and the delivery point for NYMEX futures. It sets the feedgas cost floor from which US LNG export economics to Europe and Asia are calculated.Source: NYMEX / EIA
- How does the Henry Hub price relate to what Europe pays for US LNG?
- US LNG delivered to Europe costs approximately Henry Hub plus USD 3-4/MMBtu for liquefaction plus shipping. With Henry Hub at USD 2-3/MMBtu and TTF above EUR 47/MWh (~USD 14/MMBtu), the export margin is substantial.Source: IEA / ICIS LNG Edge
- Does the Henry Hub price determine whether US LNG goes to Europe or Asia?
- Henry Hub sets the export cost floor; the routing decision depends on whether TTF (Europe) or JKM (Asia) offers a higher netback after adding liquefaction and shipping costs for each route.Source: european-energy-markets briefing
- Where is Henry Hub located?
- Henry Hub is a pipeline interchange at Erath in St. Mary Parish, Louisiana, where multiple US interstate and intrastate pipelines converge, making it the most liquid physical delivery point for US natural gas.Source: EIA / CME Group NYMEX
Background
Henry Hub provides the feedgas cost floor for US LNG export economics. With TTF at EUR 50/MWh (approximately USD 15/MMBtu) against Henry Hub at USD 2-3/MMBtu, the spread more than covers liquefaction plus Atlantic shipping, confirming economic incentive for US LNG to flow to Europe. The spread is a daily reference for Atlantic Basin cargo routing decisions.
How the World Sees Them
Asian LNG buyers
JKM (the Asian benchmark) competes with TTF for US Atlantic LNG; when JKM is at a sufficient premium to TTF, Asian buyers outbid Europe for cargoes even though US terminals face Atlantic routing costs.
US LNG exporters
Henry Hub feedgas at USD 2-3/MMBtu combined with TTF above EUR 47/MWh provides strong export economics; exporters maximise utilisation and favour European routing when the spread is wide.
European LNG buyers
Henry Hub-linked pricing in some US LNG long-term contracts makes the commodity component transparent; buyers track Henry Hub as the upstream floor below which their delivered costs should not fall.