Is a Mature Mexican Gas Market Within Reach?
Selling gas and LNG should be a slam dunk to producers in the US. Mexican gas prices in the southern part of the country (gas region 4, 5 and 6) are a bit higher than North-Western Europe hub prices, transport is quick and must be cheap as compared to crossing the Atlantic and terminals can be built. If was developing a USGC based export project, my feelers would be in Mexico. Not only in >Mexico but I would certainly not forget this great future customer.
Longtime oil-based Mexico is increasingly turning to natural gas to meet its rising energy needs. The goal has been to displace higher cost oil in both the power and industrial sectors. Once providing over 40 percent of federal revenues, oil production has been cut in half to below 2 million b/d since peaking in 2004.
