Background

Henry Hub provides the feedgas cost floor for US LNG export economics. With TTF at €50/MWh (approximately $15/MMBtu) against Henry Hub at $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.

Common 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 $3-4/MMBtu for liquefaction plus shipping. With Henry Hub at $2-3/MMBtu and TTF above €47/MWh (~$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

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 $2-3/MMBtu combined with TTF above €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.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 22 May 2026. Editorial standards.