Natural Gas
The fuel that powers America’s grid. Natural gas generates 43% of U.S. electricity, heats 48% of homes, and is the fastest-growing U.S. energy export. Henry Hub pricing, LNG terminal capacity, storage cycles, weather-driven demand, and the power-sector dynamics that set gas prices.
Henry Hub: The North American Benchmark
Henry Hub is a natural gas pipeline junction in Erath, Louisiana where 13 major interstate pipelines intersect. It serves as the physical delivery point for NYMEX natural gas futures and the de facto benchmark for U.S. and North American gas prices. When you see a natural gas price quoted in financial media, it is almost always Henry Hub.
Henry Hub prices have ranged dramatically — from sub-$2/MMBtu during the 2020 shale glut to above $9 during the 2022 Russian supply crisis. Current prices near $2.65/MMBtu reflect mild spring demand and abundant U.S. production. The benchmark is quoted in dollars per million British thermal units (MMBtu), with one MMBtu equivalent to about 1,000 cubic feet of gas.
LNG Exports Link U.S. Gas to Global Markets
The U.S. became the world’s largest LNG exporter in 2023. Export capacity of approximately 14 Bcf/d represents about 13% of total U.S. gas production. When European or Asian gas prices spike, U.S. LNG export demand increases, which pulls Henry Hub higher. This links what was previously a purely domestic market to global supply-demand dynamics.
Europe receives approximately 65% of U.S. LNG cargoes. Asia (led by Japan, South Korea, China) takes most of the remainder. Major terminals include Sabine Pass, Cameron LNG, Freeport LNG, Corpus Christi, Elba Island, and Cove Point. Golden Pass and Plaquemines are under construction. Energy Hub: LNG →
Storage and the Weekly EIA Report
Natural gas storage is the primary buffer between production and consumption. The U.S. has approximately 4,000 Bcf of working gas storage capacity across hundreds of underground facilities — depleted oil fields, salt caverns, aquifers. Storage builds during summer (production exceeds demand) and draws during winter (heating demand exceeds production).
The EIA publishes weekly storage reports every Thursday at 10:30 AM ET. The release is one of the most market-moving events in natural gas, with prices routinely moving 3-5% within minutes of the headline number. Surprises versus market expectations drive most of the price action. Storage relative to the 5-year average provides context.