We all know that Mexico is importing huge amounts of piped U.S. natural gas (here), now at around 4.1 Bcf/d and mostly coming through Texas. And our pipeline capacity to export to Mexico will expand by nearly 50% to 11 Bcf/d by summer, surging to at least 15 Bcf/d by the end of next year. Just a few days ago, Energy Transfer Partners’ launched its Trans-Pecos cross-border pipeline, adding an additional 1.4 Bcf/d to Mexico’s gas pipeline system and one of four new privately owned such lines that will be operating by summer.
There are now nearly 20 gas pipelines that enter Mexico from the U.S. Less environmental pushback in Mexico against required energy infrastructure (both from the government and public) will continually make new builds easier as demand rises. As a still developing nation, huge latent demand potential in the country makes investments particularly attractive as deregulation in Mexico progresses. Demand for modern fuels like oil and gas in Mexico is growing at 3-5% per year.