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Mexico Headwinds Amid Aims to Become Major Gas Exporter

NATGAS

Mexico is facing challenges from regulatory issues and delays as it aims to become a major exporter of natural gas, according to Energy Intelligence.

  • Most of the gas for export will be sourced from US basins and therefore any delays have a direct impact on US gas producers in the capacity-constrained Permian Basin.
  • US approvals of Oneok’s 2.5bcf/d Saguaro Connector Pipeline connecting Permian gas from Texas' Waha Hub to a new pipe under development in Mexico are under challenge of a lack of review by FERC.
  • Mexico Pacific is still eyeing a FID for the first three trains at its 15mtpa Sonora LNG export facility with enough offtakes agreements already signed for two trains.
  • New Fortress Energy (NFE) has once delayed the first LNG cargo from its small-scale floating facility off Altamira, Mexico. The first LNG from the 1.4mtpa facility is expected in the next 10 days, with a first cargo in July , NFE said on Friday.

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