US LNG Pause Impacting Mexico’s Export Ambitions

The Biden administration’s decision to pause approvals of new LNG export licences has could affect at least seven planned LNG projects in Mexico, according to El Diario.

• The new terminals could turn Mexico into a major player in the LNG industry. However, the country is waiting to see whether the export pause will undermine investment or simply delay its entry into the market.
• Sempra’s Costa Azul terminal in Baja California does not seem affected by the export pause, neither does New Fortress Energy’s Altamira Fast LNG.
• The 155m long saguaro energy pipeline with a 2.8 bcf/d capacity linking the USA and Mexico is also under threat.
• The FID has not yet been taken, and executives confirmed it would not be completed if they believed it would become a “pipeline to nowhere”.