Natural gas pipeline exports to Mexico reach record 5 billion cubic feet per day
Natural gas exports to Mexico by pipeline surpassed 5 billion cubic feet per day (Bcf/d) for the first time in July, following the commissioning of several pipelines in Mexico, according to data compiled by Genscape.
Natural gas pipeline exports averaged 4.4 Bcf/d through the first five months of 2018, as compared to 4.2 Bcf/d in 2017.
By the end of 2018, an additional four major pipelines identified as strategic in Mexico’s five-year natural gas infrastructure expansion plan are expected to begin commercial operation. These pipelines will transport U.S. natural gas into Mexico’s central and southern regions and provide an additional outlet for Permian production in western Texas.
About three-quarters of U.S. natural gas pipeline exports to Mexico currently flow from southern Texas. This natural gas is sourced mainly from the Eagle Ford Basin in Texas. Exports from southern Texas averaged 3.3 Bcf/d through the first five months of 2018 and 3.2 Bcf/d in 2017. Additional export capacity from southern Texas equaling 3.0 Bcf/d will begin commercial operations later this year.
Exports from western Texas averaged 0.4 Bcf/d in 2017 and 0.5 Bcf/d from January to May.
The 2.6 Bcf/d U.S. Valley Crossing pipeline, also called the Nueces-Brownsville pipeline, will connect to Mexico’s Sur de Texas-Tuxpan underwater pipeline. The pipelines are expected to be placed in service in October 2018.
Pipelines at the other end of the underwater pipeline have been delayed, however. The 0.9 Bcf/d Tuxpan-Tula pipeline, which connects Sur de Texas-Tuxpan to markets in central Mexico, is not expected to begin commercial operation until 2020. The 0.9 Bcf/d Tula-Villa de Reyes pipeline has been delayed until 2019.
Until these pipelines begin operations, existing pipeline infrastructure transporting natural gas from southern Texas is expected to continue to serve the high-demand market surrounding Mexico City.
