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UPDATE 1-Henry Hub operating normally despite storm Isaac-CME
August 30, 2012 / 3:51 PM / 5 years ago

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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