For more than 30 years, Henry Hub in Louisiana has anchored natural gas pricing in the Lower 48. But in the past 10 years, its role has shifted in profound ways, especially with the rise of U.S. LNG exports. It has gone from being a domestic benchmark pricing location for a vibrant Gulf Coast producing region to a demand-driven market and an index for LNG exports. Physical volumes exchanged at the hub are the highest they’ve been, and Henry gas prices have gone from being one of the lowest in the country to one of the most premium. In today’s RBN blog, we look at how Henry Hub became so integral to the workings of the emerging LNG market, both in the U.S. and globally.
The NATGAS Production Tracker - Texas provides a DAILY update of natural gas production in Texas the New Mexico side of the Permian Basin. Quickly and easily view today’s supplies in the Lone Star state and download the full historical table when you need it.
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). We delved into the formation, evolution and rationale for the benchmark trading location in our Henry the Hub, I Am I Am blog series, and we highly recommend you revisit those blogs if you want to learn how the hub really works.
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. As shown in Figure 1 below, 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.)
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About the song
“Evolution” was written by Sheryl Crow and appears as the first song on side two of her 12th studio album of the same name. Released as a single in January 2024, it went to #12 on the Billboard Adult Alternatives chart and #33 on the Billboard Mainstream Rock Singles chart. Crow said the song is about “leaving a better world for my children and a healthier planet.” Personnel in the record were: Sheryl Crow (lead, backing vocals), Mike Elizondo (keyboards, bass, drum programming, acoustic guitar), Fred Ettringham (drums, percussion), Rob Moose (viola, violin) and Tom Morello (Digi Tech Whammy WH-1 pedal guitar solo).
The album Evolution was recorded at Phantom Studios and Old Green Barn in Nashville, as well as Multiview Studios in Los Angeles, with Mike Elizondo, Sheryl Crow and John Shanks serving as producers. Released in March 2024, it went to # 42 on the Billboard 200 Albums chart. Four singles were released from the LP.
Sheryl Crow is an American singer, songwriter, musician and actress. When singing in bands on the weekend while teaching school during the week in rural Missouri, Crow met St. Louis musician and record producer Jay Oliver. Oliver used Crow for jingles for McDonald's and Toyota. Crow relocated to Los Angeles, where she did session vocals and hooked up as a backing vocalist on Michael Jackson's Bad World Tour from 1987 to 1989. Her debut album, Tuesday Night Music Club, was released in 1993. She has released 12 studio albums, four live albums, seven compilation albums, two EPs and 56 singles. She has appeared in three motion pictures and 19 television shows. She has won three American Music Awards, two ASCAP Awards, an ACM Award, seven BMI Awards, a Billboard Music Award, a Brit Award, and nine Grammy Awards, and has a star on the Hollywood Walk of Fame. She continues to record and tour, and released her latest single, “The New Normal,” in July. She is currently on tour at select venues in the U.S.
"About the Song" -- written by Mickey McMahan , RBN Director of Musicology
