CoachA virtual trading point is a notional point of a gas transmission system, operated by its network operator, at which gas that has entered the system can be traded without regard to where it physically is. Henry Hub is a physical interconnection of pipelines in Louisiana whose price is the US benchmark and the delivery point of the main US gas futures. The Title Transfer Facility (TTF) is the virtual trading point of the Dutch network and the most traded European gas benchmark.
Examples
Example 4.9 (Europe or Asia)
Take a cargo of 3.5 million MMBtu, a charter rate of $60 000 a day, boil-off of 0.1% a day, and one-way voyages of 14 days to north-west Europe and 25 to north Asia (illustrative, but close to the 14 days from Corpus Christi to Rotterdam and 28 to Hong Kong through Panama that the Oxford Institute for Energy Studies gives), with regasification at and . With Henry Hub at the variable price is ; shipping costs to Europe and to Asia, so Asia must pay more than Europe to win the cargo. At in Europe and in Asia the netbacks are and : Asia.