Henry Hub Natural Gas

## What this measures

This series tracks the daily spot price of natural gas at the Henry Hub in Louisiana, denominated in dollars per million British thermal units (BTU). Henry Hub serves as the benchmark pricing point for natural gas in North America.

## Why it matters

Natural gas prices affect energy procurement costs, freight and logistics expenses, and input costs for manufacturing operations that rely on gas feedstock or heating. Sustained price moves can shift the economics of fuel substitution, capital projects in energy-intensive industries, and hedging strategies for exposure to gas-linked contracts.

## How to read it

A rising price signals tightening supply relative to demand, raising energy costs for gas consumers. A falling price indicates loosening conditions, reducing input costs and easing pressure on margins for gas-dependent operations.

## What it does not say

This spot price does not indicate future prices, regional basis differentials away from Henry Hub, or the cost of firm transport and storage. It does not reveal whether current levels reflect weather, storage inventories, pipeline constraints, or shifts in liquefied natural gas export demand.

## Source

The series is published by the Federal Reserve Bank of St. Louis (FRED), sourced from the U.S. Energy Information Administration. Palanor pulls the series from the FRED API nightly.