U.S. natural gas exports to Mexico by pipeline reached record high in July 2018, after the commissioning of several key pipelines in Mexico, the U.S. Energy Information Administration (EIA) said Wednesday.
EIA figure showed that the natural gas pipeline export to Mexico exceeded 5 billion cubic feet per day (bcf/d) for the first time in July 2018.
In addition, by the end of 2018, an additional four of six major pipelines identified as strategic in Mexico's five-year natural gas infrastructure expansion plan are scheduled to begin commercial operations. These newly commissioned pipelines will transport U.S. natural gas farther into Mexico's central and southern regions.
Currently, about three-quarters of U.S. natural gas pipeline exports to Mexico flow from southern Texas. Exports from southern Texas averaged 3.2 bcf/d in 2017 and 3.3 bcf/d through the first five months of 2018. This natural gas is sourced primarily from the Eagle Ford Basin in Texas and transported on an existing pipeline network to serve industrial and power sector customers in northeastern Mexico.
Exports from western Texas, however, have been limited. Exports from western Texas averaged only 0.4 bcf/d in 2017 and 0.5 bcf/d in the first five months of 2018. Significant delays in construction of the connecting pipelines on the Mexican side of the border have led to relatively low utilization of cross-border pipeline capacity from western Texas.
EIA believed natural gas exports from the United States will help meet growing demand from Mexico's natural gas-fired power generation and industrial sectors, offsetting declines in Mexico's domestic production.
