Exports of natural gas to Mexico expected to increase

Fuel Fix:

Natural gas-fired power plants account for the majority of power in Mexico, and additions to the country’s energy capacity will likely drive up Mexico’s demand for natural gas, according to an analysis by the U.S. Department of Energy.

The increased demand would open and expand markets for natural gas from Texas shale and pipeline companies. Texas firms such as Kinder Morgan and Spectra Energy, both of Houston, and Energy Transfer Partners of Dallas are developing or expanding pipelines to carry more natural gas to Mexico.

Natural gas generated 54 percent of Mexico’s power in 2015, up from only 34 percent 10 years before. Natural gas is also expected to account for 60 percent of the additions to Mexico’s power grid over the next three years.

As a result, Mexico’s demand for natural gas is expected to greatly increase, and that demand will be largely met by imports from the United States, according to the Energy Department.
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The Mexican government would be wise to raise these Americans imports in their negotiations with the Trump administration over NAFTA.  The Mexicans are also allowing private companies to sell power loosening the government monopoly.  This could lead to even greater demand.

American exports of gas are expected to increase, proving again how wrong Democrats were to oppose allowing US oil and gas to be sold abroad.  These exports are creating jobs and helping with the US trade balance..