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New opportunities arise with demand in Mexico

Nicholas Newman Pipeline Gas Journal April 2016
Pipeline construction – welding

In the southern United States, Texas finds itself awash with gas while Mexico, its southern neighbor, has seen a decline of 24% in its domestic natural gas production since 2010 and is unable to meet rising domestic demand, according to a recent presentation by Kenneth S. Culotta, of the Houston energy law firm, King & Spalding.

Since 2012, Texas shale gas fields have been both the enablers and the chief beneficiaries of rising Mexican consumption of natural gas. U.S. gas exports to Mexico hit a near-record 70.9 Bcf last April, up 25% over the previous year, according to data from the U.S. Energy Information Administration (EIA). This upward trend is expected to continue, albeit at a slower pace, with Bloomberg forecasting U.S. deliveries to Mexico will reach 150 Bcf a month by 2020.

New Opportunities Arise with Demand in Mexico


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