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Natural gas accounts for almost a quarter of energy consumption in the United States. The New York Mercantile Exchange (NYMEX) Division natural gas futures contract is widely used as a national benchmark price.
The futures contract trades in units of 10,000 million British thermal units (MMBTU) each day from 10 a.m. to 2:30 p.m. except holidays. The price is based on delivery at the Henry Hub in Louisiana, the nexus of 16 intrastate and interstate natural gas pipeline systems that draw supplies from the region's prolific gas deposits.
These pipelines serve markets throughout the East Coast, Gulf Coast and Midwest and up to the Canadian border. An options contract provides additional risk management opportunities.
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