US GAS EXPORTS TO MEXICO SET TO RISE 30%

According to Platts analysts US gas exports to Mexico have been on the rise over the last several years as Mexico contends with declining natural gas production and rising demand. In 2017, Platts Analytics’ Bentek Energy expects that US exports to Mexico could reach as high as 5.4 Bcf/d by late-summer. However, the timing and strength of that build will be highly dependent on the timely addition of a roughly 4.1 Bcf/d year-on-year build in export capacity. US natural gas exports rose to 3.7 Bcf/d in 2016, a 20% build over 2015, largely due to new exports along the NET Mexico pipeline in South Texas. This year, total US exports to Mexico are set to rise by another 1.1 Bcf/d, or 30%, supported by the addition of three four new border crossings in South and West Texas. These new exports will fill in for falling domestic natural gas production in Mexico, which is expected to decline by another 20% in 2017. Demand is also expected to rise by around 11%, largely supported by growing gas-fired power generation needs. There is over 7 GW of new natural gas fired generation planned with a 2017 in service date, according to data compiled in the Platts Analytics Mexico Facilities Databank. These new exports will reach the Mexican market via four new export pipelines: Roadrunner, Comanche Trail, Trans-Pecos, and Nueva Era. (Source: Platts – Image: Trans-Pecos pipe line / San Antonio Express)