UPDATE 1-Henry Hub operating normally despite storm Isaac-CME
* Deliveries under NYMEX contracts unaffected * Henry Hub has flooded in the past due to storms * Natgas prices largely unaffected by storm NEW YORK, Aug 30 (Reuters) - The Henry Hub delivery point for U.S. NYMEX natural gas futures in Louisiana was continuing to operate normally on Thursday despite heavy rain from tropical storm Isaac, CME Group and traders said. Henry Hub, an intersection where several major pipelines supplying gas from southern producing regions converge, is the benchmark pricing point for the natural gas market. The Hub was flooded in September 2005 when Hurricane Rita swept through the area, and in 2008 during Hurricane Ike, leading to force majeures on NYMEX deliveries on both occasions. "Henry Hub continues to operate normally," said a spokesman for CME Group, who added that deliveries under NYMEX contracts remained unaffected. "We are continuing to monitor the circumstances." Trading was continuing as normal on Thursday, traders said, though with light volume. Natural gas for Friday delivery was seen at $2.72 per million British thermal units, up 8 cents from the previous session and 4 cents above the October futures contract. Gas futures and cash prices have been largely unaffected by Isaac, in part due to demand reductions because of the storm, but also because of the glut of onshore supplies that have kept consumers well supplied and suppressed prices over the past year. Sabine Pipe Line LLC late Tuesday said it shut in the Sea Robin/Henry Hub interconnection until further notice due to the water content of gas being delivered to the Hub following Hurricane Isaac's landing on the Louisiana coast, though further problems seem to be limited. Pipeline operators feeding into Henry Hub have not reported any problems with operations in the area.
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