Henry Hub natural gas futures — the US benchmark price, and a widely used reference point for the global LNG market Pakistan increasingly relies on to meet its own gas shortfall.
Source: Yahoo Finance, Henry Hub natural gas futures (NG=F), monthly closes.
Henry Hub, located in Louisiana, is the pricing point that underlies the main US natural gas futures contract and one of the most widely referenced global gas benchmarks, alongside European (TTF) and Asian LNG spot prices.
Pakistan's domestic natural gas fields have been in structural decline for years, forcing a growing reliance on imported Liquefied Natural Gas (LNG) to meet electricity generation, industrial, and household demand — a shortfall that has widened noticeably over the past decade.
LNG cargo pricing in Asia is typically referenced against regional Asian spot benchmarks rather than Henry Hub directly, but Henry Hub remains a widely watched global gas-price signal and a rough directional indicator of broader global gas market conditions that also influence Asian LNG pricing.
As domestic gas production declines, Pakistan's exposure to global LNG prices grows — a sustained rise in global gas prices raises the cost of imported LNG, adding to the energy import bill alongside crude oil.
Natural gas and LNG are key inputs for domestic electricity generation and fertilizer production, so global gas price swings feed through into Pakistan's power tariffs and, from there, into broader industrial costs and consumer inflation.