Katy Hub Nat Gas Pricing

@tracy_lenz speaks to the reality of the situation… no more freebies out there. Having had experience in the nat gas biz in the US, here’s my ‘hack’ as is popular to say these days.

Talk around, research around, find a friend/trader/employee in the nat gas marketing arena, and get them to look around the country at the various trading nodes (Katy, Opal, Waha, Carthage etc.) and look at the historical differentials (differences) from Henry Hub (where merc contracts settle). While these differences will vary over time, there are established reasons for the amount of differences. It all boils down to distance to markets, connectivity/optionality.

One could think of this like the air travel business. Hubs, spokes, and destinations.