Enterprise Is the Latest to Bet on Mexico’s Thirst for U.S. Gas

06/20/16 Bloomberg

natural gas drillIn two years, pipeline giant Enterprise Products Partners LP will be capable of processing 800 million cubic feet of natural gas a day in an energy-rich stretch of West Texas and southeastern New Mexico known as the Delaware Basin — 20 times what it could handle in 2012.

Behind this rapid expansion in one of America’s most prolific oil and gas plays is a big bet on a different market: Mexico. Once Enterprise removes liquids from the gas in the basin, the fuel will flow into pipelines delivering supplies to the southerly neighbor, among other places, Enterprise spokesman Rick Rainey said by phone Monday.

Enterprise is “going to service the burgeoning demand for natural gas in Mexico,” Ed Hirs, an energy economist at the University of Houston, said by phone. “They are staking a claim to the market.”

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