<p>The Mid-Continent trading and storage hub at Cushing, OK is the nation’s largest commercial crude tank farm – with an estimated 73 MMBbl of working storage capacity according to the Energy Information Administration (EIA).</p>
The Henry Hub, LA physical interconnect at the center of North American natural gas pricing is about to go through big changes with the in-service of liquefied natural gas (LNG) export terminals as soon as the end of 2015 and growing industrial demand in the Gulf Coast region. These changes are also likely to impact the CME/NYMEX futures contract that is based on delivery at Henry. To understand how the demand growth nearby will impact Henry Hub cash and futures markets, we must first understand what really goes on physically at Henry. In today’s blog, we dive into the workings of the physical Henry spot market.
