Henry Hub definition
Examples of Henry Hub in a sentence
On the second day following the close of the trading of the NYMEX Henry Hub natural gas contracts for the prospective month, the Company shall submit to the Board, a Monthly Basic Gas Supply Service (“BGSS”) Charge, which shall be applicable to customers in the GSL, DGC, NGV, CNG, and IS service classifications, and to customers in the ED service classification listed above who are eligible to receive service under Service Classification GSL.
The Henry Hub, which is operated by Sabine Pipe Line, LLC, serves as a juncture for 13 different pipelines.
However, at other locations that are not directly connected to the Henry Hub or where shipping capacity is limited, the prices at those locations often diverge from the Henry Hub price.
Furthermore, one local price may be significantly different than the price at another location even though the two markets’ respective distances from the Henry Hub are the same.
The estimated fair values of the natural gas swaps were determined using New York Mercantile Exchange (“NYMEX”) futures settlement prices for delivery of natural gas at Henry Hub adjusted by the price of NYMEX ClearPort basis swaps, which reflect the difference between the price of natural gas at a given delivery basin and the Henry Hub pricing points.
For locations that are directly connected to the Henry Hub by one or more pipelines and where there typically is adequate shipping capacity, the price at the other locations usually directly tracks the price at the Henry Hub, adjusted for transportation costs.
In respect of Natural Gas: Natural Gas on the New York Mercantile Exchange (the "NYMEX", "Exchange" and "Price Source") for the settlement price (the "Specified Price") for the Delivery Date (as defined below) of the Henry Hub Natural Gas futures contract, stated in U.S. Dollars per MMBTU, as made public by the Price Source on each Pricing Date.
The throughput shipping capacity of the Henry Hub is 1.8 trillion mmBtu per day.In addition to the Henry Hub, thereare a number of other locations where natural gas is traded.
Under the purchase and sale agreement, Cenovus is entitled to receive cash for each month in which the average daily price of WTI is above US$55 per barrel or the price of Henry Hub natural gas is above US$3.50 per MMBtu.
On the second day following the close of the trading of the NYMEX Henry Hub natural gas contracts for the prospective month, the Company shall submit to the Board, a Monthly Basic Gas Supply Service (“BGSS”) Charge, which shall be applicable to customers in the GSL, FC, IS, and ED service classifications listed above and whose annual use is greater than or equal to 5,000 therms.