Natural Gas (Henry Hub)
Natural gas is one of the most important sources of energy of our time. The odorless and colorless gas is used in industries and households as a fossil fuel. Natural gas is a mixture of hydrocarbons, carbon dioxide, nitrogen, hydrogen sulfide and in some cases noble gases. Natural gas is often used as heating gas in private households or commercial premises. It is also increasingly used to fuel passenger cars. In industry, natural gas is required as a process heat energy carrier in electronic heat generation. The alternative name for natural gas, “Henry Hub”, originates from the gas pipeline with the same name which runs through Erath, Louisiana. This pipeline has great influence on the price for natural gas futures, which are traded on the world’s largest commodity futures exchange, the New York Mercantile Exchange (NYMEX). Since June 2007, the Henry Hub Pipeline has also been connected to four other domestic pipelines and nine other international ones. The price of natural gas also depends to a large extent on the price of oil.