Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Mexico to keep importing natural gas as U.S. exporters face oversupply

Mexican President Andres Manuel Lopez Obrador said it will be a long time before Mexico produces enough natural gas to become self-sufficient and the country will continue to rely on imports until then, a boon for U.S. exporters.

Mexico imports more than 70% of its gas needs from abroad, and more than 90% of those purchases come from the United States.

"It's going take a long time to be self-sufficient in gas," Lopez Obrador told reporters at his daily news conference. "We're going to be forced to import gas because gas production and extraction was completely neglected."

Lopez Obrador has promised to reverse declining oil and gas production by strengthening state oil company Pemex.

But he has also scrapped the auction of oil and gas blocks to private firms, which some analysts say runs counter to the goal of boosting national production.

Mexico's oil and gas regulator has said Mexico should speed up development of its natural gas reserves, including potentially massive shale deposits, to curb a growing "supply risk" fed by excessive dependence on U.S. supplies.

U.S. natural gas pipeline exports to Mexico hit a monthly historic high of 170.6 billion cubic feet in October, according to data published by the U.S. Energy Information Administration. Mexico also imports liquefied natural gas.

"For U.S. producers, Mexico is an important outlet for exports, especially given the current oversupply we are seeing particularly in states such as Texas," said James Fowler, senior energy analyst for the Americas at global commodity market intelligence provider ICIS.

Fowler said Mexican demand for imported gas should continue growing in the coming years as new pipelines are completed in central Mexico and new power plants come online.

"While some small new fields are expected to come online in the next couple of years, these volumes are unlikely to make much of a difference as Pemex's production from older fields continues to fall," he added. "At best, new production coming onstream in the next 2-3 years will halt the decline and stabilize production at current levels." (Reporting by Diego Ore, Anthony Esposito and Marianna Parraga; Editing by Paul Simao)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.


Corrosion Control for Gas Treating Amines: Technology Leads to Increased Amine Unit Efficiency

Register Now

Accelerated basin drilling activities combined with increased fugitive gas emission capture technologies have increased trace oxygen levels in midstream natural gas. Oxygen present in concentrations even as low 30-50 ppm will cause costly corrosion-related problems in plant operations and processing equipment. One area in the plant most affected by oxygen is the amine unit. Oxygen will degrade MDEA-blended amines to corrosive amino acids and heat-stable amine salts.

Learn how a new technology from BASF combined with innovation from Nalco Water can increase amine efficiency and reduce costs associated with corrosion. This new technology will inhibit the degradation of amines from oxygen attack and control corrosion in process gas, while stabilizing the amine from degradation into bicine and other heat-stable amine salts. Together with Nalco Water’s real-time amine corrosion control program, have been proven to both mitigate oxygen degradation of amine and reduce the overall corrosivity of amine units.

August 19, 2020 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.