Mexico Prepares To Ramp Up Imports Of US Natural Gas

Houston is benefiting from rising U.S. natural gas exports to Mexico. Those exports are on track to grow significantly over the next few years.

Last year, U.S. gas exports to Mexico reached nearly 1.7 billion cubic feet per day. That’s still only about half the capacity of existing pipelines. But with demand growing so rapidly, three new pipelines are now in the works.

Karen Hooper is director of analysis for Latin America at geopolitical intelligence firm Stratfor.

“This is going to double or more than double the capacity of the U.S. to export to Mexico. Mexico’s ability to absorb that will probably grow over the years, so the capacity of these pipelines probably won’t equal the amount directly exported to Mexico in those first few years, but it allows for an increase in consumption in the Mexican market for the years to come.”

In addition to the gas exports themselves, Houston has a stake in the pipelines’ construction. Kinder Morgan is currently seeking regulatory approval to build the U.S. portion of the so-called Northwest pipeline, planned to connect Tuscon, Arizona to the Mexican city of Mazatlán.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...