Mexico to Double Imports of U.S. Gas
Shale Gas Unlikely to Satisfy Increased Demand
The Secretaría de Energía de México has projected that imports of U.S. gas, which doubled between 2009 and 2013 to 1.8 Bcfd (51 x 106 m3), will double again by 2018 to 3.8 Bcfd (107 x 106 m3).
The U.S. Energy Information Administration (EIA) said the growth will be driven mainly by private and independently operated electric power plants in both the north and interior of the country.
EIA said pipeline imports from the United States are Mexico’s best opportunity to satisfy demand growth, since its gas production is stagnant and its capacity to increase liquefied natural gas imports is limited.
It said Mexico’s plans to develop the La Casita and Eagle Ford shale gas resources in the northeastern part of the country may be inhibited by the geologic complexity and discontinuity of shale gas areas, the lack of technology and water resources, security concerns and a focus on developing crude oil production.
“Even if additional development did occur, Mexico’s northern regions would likely still see high growth in pipeline imports from the United States, particularly in areas that lack pipeline connectivity to other parts of the country,” EIA said.