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Pipeline Gas exports to Mexico have been rising and should continue to rise on rising Mexican demand with insufficient domestic production capability. Costa Azul LNG import terminal conversion would see even more US gas imported by Mexico.

US Mexico Gas Exports

Mexico’s reliance on US supply should continue as domestic demand there climbs. Mexico has not kept up with production despite gas resources. Futher when Mexico converts its Costa Azul LNG import terminal to an export terminal then Mexico will become a transit state.

This would mean Mexico would import more US pipe gas exports. On this basis Citigroup forecasts this could top ~8-Bcf/d by 2024 Together with LNG, total US has exports (ex-Canada) could surpass ~22-Bcf/d by 2024. This could put the US on par with Russia.

Pipeline gas Exports to Mexico

Source: Citigroup

From The Traders Community Research Desk

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