About Henry Hub Natural Gas

Henry Hub Natural Gas futures contract (NG) allows you the opportunity to profit from or hedge against the price movements of this increasingly important fossil fuel.

Though once considered a mere byproduct of oil production, natural gas is becoming the most important fuel in the energy complex, with NG trading as the third-largest futures contract in the world by volume.

As the cleanest burning fossil fuel, natural gas is widely considered a bridge fuel to the next generation of alternative fuels. With new methods of transport being devised to deliver and consume the gas and new supplies continually being discovered, the price of natural gas continues to be pushed between the demand and supply sides of this dynamic market.

The Contract

Each Henry Hub futures contract represents 10,000 million British thermal units of deliverable natural gas with a minimum tick price of $.001 per MMBtu. The contract trades electronically six days a week, 23 hours per day, with a daily 60-minute break at 5 p.m. Eastern Time. 

Supply and Demand

The price of NG is based on delivery at the Henry Hub delivery point in Louisiana. This price can be volatile and market participants buying or selling the contract should be prepared for weather- or demand-related price swings as well as supply disruptions. Heating demand drives natural gas price higher during unusually cold winters.

As natural gas is increasingly used for electricity generation, hot weather can spike the price in the summer as people switch on their air conditioners.

Conversely, recent discoveries of large natural gas supplies can put downward pressure on the price of natural gas and cause structural changes to the market.

As such, traders of NG must stay alert to the fundamentals underlying this critical market and the many of ways in which they impact the daily price.

Test your knowledge


Did you know that CME Institute classes can fulfill CFA and GARP continuing education requirements? Every CME Institute course can be self-reported in your CFA online CE tracker and select classes can be used for GARP credits. See which of our classes qualify for GARP credits here.

What did you think of this course?

To help us improve our education materials, please provide your feedback.

Extend your learning

Put your knowledge into practice with the Trading Simulator

Get hands on experience with the latest Trading Challenge

CME Group is the world’s leading derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

© 2022 CME Group Inc. All rights reserved.