Locator: 49528NATGAS.
The other day I mentioned with all the interest in natural gas and the large data center build-out, I needed to get re-acquainted with some of the jargon, particularly the US natural gas pipeline system.
Today/tomorrow, RBN Energy has an in-depth review / update regarding the Henry Hub.
Early in the blog:
Established in the 1980s near the now-defunct Texaco Henry gas processing plant, Henry Hub has been used as the basis for domestic gas deals for decades. Since 1990, it’s also served as the delivery mechanism for the third-largest commodity futures trading instrument in the world — the CME/NYMEX Henry Hub natural gas futures contract (behind only WTI and Brent crude).
When we talk about Henry Hub, we’re really talking about Sabine Pipe Line (SPL) — a small, 150-mile, 235-MMcf/d interstate system in Southern Louisiana — and the 11 pipelines that connect to it in Vermillion Parish, LA. These include: Acadian, Columbia Gulf (CGT), Gulf South, Jefferson Island, Natural Gas Pipeline of America (NGPL), Sea Robin, Southern Natural (SONAT), Texas Gas, Transcontinental Gas Pipeline (Transco), Trunkline, and Bridgeline, an intrastate sister pipeline to Sabine. Most of these interconnects are bidirectional, and all but four (Acadian, Bridgeline, Jefferson Island and Sea Robin) are large-diameter, long-haul interstate pipelines. Depending on the combination of receipt and delivery points, these interconnects total as much as 3 Bcf/d of receipt capacity inside the hub and as much as 2.6 Bcf/d of delivery capacity. (For more on pipeline flows, see RBN’s Arrow Model, which breaks Louisiana and Texas into 11 regions and creates predictions for flows based on internal supply-and-demand fundamentals and the available pipeline capacity from one region to another.)
RBN Energy's "arrow model": link here.
Over at x: link here.
An early article on this very subject, April 1, 2025: link here.
Fortunately that April 1, 2025, article has been archived.
An April 8, 2025, article on the Arrow Model: archived.
