Henry Hub Natural Gas Futures Expiration and Delivery Explained
Learn NYMEX NG futures expiration and delivery: trading cutoff, delivery period, Henry Hub flow, final settlement basis, and broker deadlines.
Direct answer
Standard NYMEX Henry Hub Natural Gas futures, NG, are physically delivered contracts with a delivery-month process. Under the current NG rule, no trades are permitted after the third business day before the first calendar day of its delivery month. Delivery can occur from the first through final calendar day of that month at the buyer's interconnection by physical flow or displacement. The final settlement price is the basis for delivery; NG is not cash-settled and expiry does not promise that every holder receives gas.
NG's last trading day and delivery period are separate contract entries
For an expiring NG month, the rule permits no trades after the third business day before the first calendar day of the delivery month. That defines the trading cutoff for the named contract. It is not a generic calendar shorthand for a whole natural-gas market, and a business-day calendar can matter to the specific date.
Futures first notice day and last trading day explains the broader lifecycle terms while preserving the exact product's own rule. Keep the NG delivery month and year with the cutoff rather than applying one remembered date to every listed month.
Physical delivery runs through the named month at a buyer's interconnection
NG delivery can run from the first through final calendar day of the delivery month. The contract is physically delivered at Henry Hub near Erath, Louisiana, FOB the buyer's interconnection, by physical flow or displacement. That states the rule's delivery framework; it does not make the contract a cash settlement or a customer instruction to take, transport, or store gas.
What Henry Hub Natural Gas futures are establishes the standard NG unit and physical-delivery designation. Cash-settled versus physically delivered futures separates a physical-delivery design from a cash-settlement design without turning either one into an individual account outcome.
Final settlement and remaining positions use the NG rule's delivery framework
For the expiring NG month, the final settlement price is the basis for delivery. It is a contract-defined final field, not a generic live natural-gas price or a substitute for an account's current executable quote. It should remain distinct from a daily settlement or a price shown for a later NG month.
Under the rulebook, remaining open positions after the last trading day must use delivery or a bona fide EFRP. That requirement describes the exchange process for the named contract. Account eligibility, clearing arrangements, and broker procedures still determine how a particular position is handled, and a broker can set an earlier deadline.
A later NG month is a new contract, not an extension of the expiring month
An expiring NG month and a later delivery month are separate contracts with their own trading cutoffs and delivery terms. Moving exposure from one to the other requires two distinct legs: offsetting the near month and establishing the deferred month. It is not an automatic extension of the original agreement.
Futures contract roll mechanics explains why a roll changes contracts rather than erasing the near month's delivery terms. A later contract's displayed price also does not replace the final settlement price that is the basis for delivery of the expiring month.
Build the NG delivery calendar from product-specific terms
For the exact NG month, record the product, delivery month-year, last trading day, delivery-period boundaries, final settlement price field, current rulebook source, delivery-process source, and broker cutoff. How to read futures contract specifications provides a checklist for the product and final-process fields that belong with that record.
Futures contract month codes explains why the delivery month and year should stay with every calendar entry. What happens when a futures contract expires adds a broad lifecycle frame without replacing the current NG rulebook, delivery process, or account-specific instructions.
This guide describes standard NYMEX Henry Hub Natural Gas futures contract mechanics. It does not state a current deadline for a particular account, direct a delivery action, recommend a position, or determine a broker's handling of a contract. The current CME rulebook, delivery procedure, market calendar, and account documents govern the exact NG month.
Common questions
When does trading end for an expiring standard NG contract?
Under the current NG rule, no trades are permitted after the third business day before the first calendar day of the delivery month. Check the named month and the applicable business-day calendar for the exact cutoff.
When can NG delivery occur?
NG delivery can occur from the first through final calendar day of the delivery month. The rule provides for FOB delivery at the buyer's interconnection by physical flow or displacement.
What is the final settlement price used for in NG?
For the expiring NG month, the final settlement price is the basis for delivery. It is a contract-defined final field, not a generic live natural-gas quote.
Must every remaining NG position result in a customer receiving gas?
No. The rulebook requires remaining open positions after the last trading day to use delivery or a bona fide EFRP. Clearing arrangements, account eligibility, and broker procedures affect how a particular position is handled.
Can a broker require action before the exchange's NG delivery terms?
Yes. A broker can set an earlier close, roll, or position-management deadline. Check the exact NG month and the broker's current written instructions well before a delivery-related cutoff.