August 30, 2012 / 1:35 PM / in 5 years

Henry Hub operating normally despite Isaac - CME

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, leading to force majeures on NYMEX deliveries.

“Henry Hub continues to operate normally,” said a spokesman for CME Group. “We are continuing to monitor the circumstances.”

Traders said that trading was continuing as normal on Thursday, though with light volume. Natural gas for Friday delivery was seen at $2.70 per million British thermal units, up 6 cents from the previous session and 4 cents above the October futures contract.

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.

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