Mexico's Ever Growing Natural Gas Market

[thackney]

Mexico's Ever Growing Natural Gas Market
http://www.forbes.com/sites/judeclemente/2016/07/02/mexicos-growing-natural-gas-market/#6ecdb29d5ddc
JUL 2, 2016

Mexico is a very fast growing natural gas market, and imports from the U.S. could reach 8-10% of current U.S. production much faster than most realize. The 2013 Energy Reforms are a historic opportunity for state-owned Pemex to increase oil and gas production and lift the economy. Pemex has been forced to unfairly provided the government with 35-40% of its budget. Too lengthy of a subject to detail here (check here, here, here), but the reforms and the Implementation Plan should install a fully competitive Mexican natural gas market around 2018.

Like the upstream oil and gas sector, Mexico’s midstream has been plagued by underinvestment for a very long time. Today, despite having well over four times more people, Mexico has about 1/10 of the pipeline system that Texas has. Much of Mexico’s pipeline and generation sectors have been centered in the eastern/northern parts of the country, and the infrastructure buildout is meant to bolster the southern/western areas that have been underdeveloped and isolated.

And with far less costly regulations and environmental opposition, “TransCanada finds warmer welcome in Mexico for pipeline business.” Mexico’s natural gas midstream sector should expand in length by over 90% in the next three years to 13-15,000 miles of gas pipelines.

Limitations for both electricity and natural gas have been two key factors constraining output growth in Mexico. The McKinsey Global Institute reports that “despite its energy endowments, Mexico lacks a cost-efficient and reliable power supply, which limits the productivity of even the best-run enterprises.”  Mexico’s transmission and distribution losses have been a crucial weakness and run about 20% of total generation, twice the OECD average.

See source article for links to more information and more of the article

[IsailedawayfromFR]

http://eaglefordshale.com/news/3-6-billion-deal-to-move-eagle-ford-gas-to-mexico/

Eagle Ford Gas Heads to Mexico in $3.6 Billion Pipeline Deal
TransCanada and Spectra Awarded Contracts
Jun 29, 2016 By Elizabeth Alford
Mexico’s demand for more electricity is creating a golden opportunity for Eagle Ford producers.

TransCanada and Spectra Energy are among producers who will receive $3.6 billion in contracts from Mexico’s state-owned Federal Electricity Commission to build 665 miles of pipelines to carry natural gas.

In 2014, Mexico passed historic energy reforms to boost the lagging production brought on by decades of inefficiency and diminished supply. This move set the stage for greater collaboration between businesses that operate in the Eagle Ford Shale and Mexico.
Eagle Ford Gas Heads to Mexico in $3.6 Billion Pipeline Deal
TransCanada and Spectra Awarded Contracts
Jun 29, 2016 By Elizabeth Alford
TransCanada in Mexcio

TransCanada Expands Pipelines in Mexcio

Mexico’s demand for more electricity is creating a golden opportunity for Eagle Ford producers.

Related: Eagle Ford & Mexico- An Important Partnership

TransCanada and Spectra Energy are among producers who will receive $3.6 billion in contracts from Mexico’s state-owned Federal Electricity Commission to build 665 miles of pipelines to carry natural gas.

In 2014, Mexico passed historic energy reforms to boost the lagging production brought on by decades of inefficiency and diminished supply. This move set the stage for greater collaboration between businesses that operate in the Eagle Ford Shale and Mexico.

 

TransCanada was the first private company to construct and operate natural gas pipelines in Mexico and become a key player since the Mexican government made the expansion of the national gas pipeline a priority. In this latest deal, TransCanada will construct and operate a $2.1 billion natural gas pipeline in Mexico, which will ship natural gas from both U.S. shale plays and offshore sources.
By 2018, TransCanada will be operating seven major natural gas pipeline systems in Mexico representing approximately a US$5 billion investment. In addition to supplying natural gas to some areas of the country where it has never before been available, these projects contribute to strengthening local economies and provide significant employment opportunities, particularly during construction.



Spectra Energy was awarded a $1.5 billion contract to build a pipeline from Nueces County, Texas, to the Mexican border at Brownsville. The Texas portion of the pipeline is planned to be completed in 2018 and will transport up to 2.6 billion cubic feet of natural gas a day.
TransCanada was the first private company to construct and operate natural gas pipelines in Mexico and become a key player since the Mexican government made the expansion of the national gas pipeline a priority. In this latest deal, TransCanada will construct and operate a $2.1 billion natural gas pipeline in Mexico, which will ship natural gas from both U.S. shale plays and offshore sources.
By 2018, TransCanada will be operating seven major natural gas pipeline systems in Mexico representing approximately a US$5 billion investment. In addition to supplying natural gas to some areas of the country where it has never before been available, these projects contribute to strengthening local economies and provide significant employment opportunities, particularly during construction.

Spectra Energy was awarded a $1.5 billion contract to build a pipeline from Nueces County, Texas, to the Mexican border at Brownsville. The Texas portion of the pipeline is planned to be completed in 2018 and will transport up to 2.6 billion cubic feet of natural gas a day.