Midstream Connect: Mexico’s Growing Appetite For US Gas

The U.S. supplies 81% of Mexico’s natural gas today and demand is expected to grow as the country expands its use of gas-fired power plants, said Regina Mayor, KPMG’s global and U.S. head of energy.

Mexico’s energy reform has led to at least 12 new pipeline projects with U.S. firms and a new gasoline station opened by BP, the first non-Pemex facility in the country in 80 years.

However, one major resource is not in short-term plans: shale. While the Eagle Ford stretches across the U.S. border into Mexico and the country’s 13 billion barrels of recoverable crude from shale place it at No. 8 in the world, the economics of exploitation make it more worthwhile to pursue cheap imports and offshore drilling for now.

Like what you read?

Register below to begin receiving Midstream Business Newsletters.