Mexico Sees Jump in U.S. Gas Imports in September

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

The Sur de Texas -- Tuxpan pipeline, which runs through the Gulf of Mexico, is supporting U.S. gas flows to Mexico. The nation's president is looking for domestic resources in her own right.

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Highest U.S. Gas Exports So Far This September

As Hurricane Polo hammers down on the western coast of Mexico, Industrial Info Resources data show cross-border natural gas flows from the United States are at their highest so far in September.

IIR Energy, in its NATGAS Today report for Wednesday, showed pipeline flows to Mexico reached 8.66 billion cubic feet, the highest level so far for September. For the five-day period ending September 23, data show flows averaged 8.1 billion cubic feet per day (Bcf/d), slightly above year-ago levels of around 7.8 Bcf/d.

Much of the gains, data show, came through the Sur de Texas -- Tuxpan pipeline, a midstream network operated by TC Energy that runs almost entirely underwater through the Gulf of Mexico. Completed in 2019, the 497-mile pipeline has a peak flow capacity of 2.6 Bcf/d, data from Industrial Info Resources show.

TC Energy last year encountered delays on the $400 million southern section of the Villa de Reyes pipeline in central Mexico due to land acquisition issues.

The company expects natural gas demand in Mexico to surge 50% from 2020 levels to reach 12 Bcf/d by the end of the decade. The government of Mexican President Claudia Sheinbaum is working to build up gas-powered networks, plants and other infrastructure to wean itself off imports from the United States.

Mexico claims about 12.3 trillion cubic feet in natural gas reserves, U.S. federal data show, though it relies heavily on its northern neighbor for natural gas. On the other side of the border in the US shale patch, it's largely the Permian basin doing much of the heavy lifting for natural gas.

Known as the largest shale oil producer in the United States, the Permian is now the second-largest gas producer behind the Appalachia Basin. As basins mature, they tend to yield more natural gas as the heavier molecules associated with crude oil get trapped in subsurface pores due to pressure changes in the well.

Mexico's Gas Production on the Rise

In her State of the Nation address from September 2, meanwhile, Sheinbaum said Mexico is producing 1.77 million barrels of oil per day and nearly 5 Bcf/d in natural gas. Data from Petroleos de Mexico (PEMEX) through July show total natural gas production up 9.4% from the same month in 2024, while Sheinbaum herself has recently reversed course to pursue shale natural gas.

A national pipeline plan, meanwhile, outlines nearly $8.3 billion in midstream investments through 2030. In Mexico, the Sistrangas Natural Gas Pipeline System, operated by PEMEX, is among the largest, Industrial Info Resources data show.

Jesus Davis, a vice president for energy services at Industrial Info Resources, said successive Mexican administrations have tried for improvements. "For many, many, years they have been talking about investing in domestic infrastructure and increasing production," he said.

Apart from its own resources, however, U.S.-sourced natural gas was used as feedstock to support this year's inaugural delivery from the Energia Costa Azul (ECA) liquefied natural gas (LNG) export facility on Baja California's Pacific Coast in Mexico.

Construction at the facility on Baja California's Pacific Coast in Mexico started in 2021. Data from Industrial Info Resources show the plant will produce 3.25 million tons per annum (MTPA) at full capacity from a single liquefaction unit, or train.

Hurricane Polo could make landfall on the Baja Peninsula by the weekend, according to the latest forecast from the US National Hurricane Center. Close behind is Hurricane Odalys, which is expected to fall apart in the Pacific Ocean by the weekend, avoiding landfall.

By the Numbers

• 9.4% increase in PEMEX gas production
• 8.66 billion cubic feet in US gas a high for September

Key Takeaways

• The United States helps feed Mexico's gas demand through cross-border pipelines.
• Mexico's president is working to shore up domestic reserves to reduce US dependence.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).