Glossary
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Hague rules (1921)

Adopted by the International Law Association at the Hague Conference in 1921, international code for conditions for the carriage of cargo under a bill of lading.

Harbour dues

Various local charges against all seagoing vessels entering a harbour, to cover maintenance of channel depths, buoys, lights; not all harbours assess this charge.

Hard aground

A vessel that has gone aground and is incapable of refloating under her own power. Also referred to as Hard and Fast.

Heads of agreement (HOA)

A preliminary agreement covering the outline terms for the sale and purchase of LNG or natural gas. See Sales and purchase agreement (SPA)

Headstation

Mainline receipt point on a pipeline.

Heat rate

The measure of efficiency in converting input fuel to electricity. Heat rate is expressed as the number of Btu of fuel (for example, natural gas) per kilowatt hour (Btu/kWh). Heat rate for power plants depends on the individual plant design, its operating conditions and its level of electricity output. The lower the heat rate, the more efficient the plant.

Heating value

The amount of heat produced from the complete combustion of a unit quantity of fuel. There are two heating values the gross (high) and the net (low) heating value. The gross value is that which is obtained when all of the products of combustion are cooled to standard conditions, and the latent heat of the water vapour formed is reclaimed. The net value is the gross value minus the latent heat of vaporisation of the water.

Hedge for accounting purposes

An accounting election, subject to certain criteria, allowing a breach of two fundamental principles of generally accepted accounting principles; either allowing gains and losses on derivatives at fair value to be deferred in equity; or allowing the measurement for financial assets and liabilities to be recorded at fair value through income.

Hedge for commercial purposes

Taking a financial position by use of a derivative or non-derivative financial asset or liability whose fair value or cash flows are expected to be effective in reducing or eliminating changes in the fair value or cash flows of a risk or a range of risks.

Henry Hub

The most widely used reference point for gas price fixing in the US. It is based on the price of gas at the Henry Hub physical interconnection between nine interstate and four intrastate gas pipelines in Louisiana. The New York Mercantile Exchange (NYMEX) uses Henry Hub as the notional delivery point for its gas futures contracts, which sets the benchmark gas price in the US Gulf. 

Hub

A contractual point where buyers and sellers execute transactions for gas. Hubs can be notional or physical, trans-regional (involving one or more transmission system operators, TSOs) or within-country (one TSO). Hubs generally consist of a Hub Services Agreement (operator) and Standard Trading Contract (trader). Examples of notional hubs are the National Balancing Point (NBP) in the UK and the Title Transfer Facility (TTF) in the Netherlands. Physical hubs include the Henry Hub in the US and the Zeebrugge Terminal (ZBT) in Belgium. See also Market centre

Hydrocarbon

An organic chemical compound of hydrogen and carbon in gaseous, liquid, or solid phase.