Pipelines increase US natural gas exports to Mexico and relieve backlog in Permian Basin
U.S. natural gas exports to Mexico by pipeline are expected to jump in the coming months as several long-awaited projects are placed into service to feed growing demand across the border and potentially ease bottlenecks in the Permian Basin in West Texas.The US and Mexico are also close to a new NAFTA agreement. The natural gas trade has already been significant exceeding 5 billion cubic feet a day in recent months.
The U.S. Energy Department reported that four major pipelines are scheduled to begin commercial operations by the end of the year to supply Mexico's power generation and industrial sectors. The country has emerged as one of the largest customers of U.S. natural gas after overhauling its energy policies five years ago.
The pipelines, which include Enbridge's Nueces-Brownsville project in the Rio Grande Valley and three projects in Mexico, are expected to start up in October and November. They'll help bring gas from West Texas, where there is a pipeline shortage, and elsewhere in the state to central and western Mexico.