Underutilization paired with project delays are driving Mexico’s demand for U.S. LNG and without north-to-south buildout, analysts don’t expect this dynamic to change soon. (Source: Hart Energy/Shutterstock)
The U.S.-to-Mexico LNG export story doesn’t seem to be changing anytime soon as analysts expect U.S. exports to grow to nearly 9.3 billion cubic feet per day (Bcf/d) by 2023. From that, 2.7 Bcf/d is expected to go directly to Mexico.
During S&P Global Platts’ webinar “Demand Beyond the Border-Mexico and LNG Exports” on Aug. 15 analysts warned that the lack of capacity utilization from U.S. export corridors like West Texas and the southwest region has become critical to this story.