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LatAmOil                                      COMMENTARY                                            LatAmOil

































                                                                                                           (Image: EIA)

       Details emerge about




       Mexico’s LNG plans







       Mexico’s offer to help supply gas to Europe appears to rely more on the use of existing

       or planned pipelines carrying gas from Texas than on boosting domestic production



                         ALTHOUGH Mexico does produce natural   supplies.
                         gas, it does not extract enough to cover 100%   Speaking during a state visit to Mexico City,
       WHAT:             of demand, which amounted to more than 9bn   Steinmeier told reporters that the Mexican
       Details are emerging   cubic feet (254.9mn cubic metres) per day as   president had offered to provide assistance in
       about potential options   of 2021. As a result, it is heavily dependent on   supplying Europe with LNG. Lopez Obrador
       for shipping LNG from   imported supplies.             “offered to step up co-operation on liquid gas,”
       Mexico to Europe.   More specifically, it is heavily dependent on   he said after a meeting in the presidential palace.
                         overland pipeline shipments from the neigh-  At that time, neither Steinmeier nor Lopez
       WHY:              bouring US, especially from fields in the Texas   Obrador offered any explanation as to what
       Since Mexico depends   section of the Permian basin. These deliveries   form such assistance might take. Since then,
       on imported gas, most of   account for most of Mexico’s imports, and they   however, more information has come to light
       the plans under consid-  now make up more than half of the country’s   on what Mexico might be able to do on Europe’s
       eration do not centre on
       domestic production.  consumption. Indeed, data compiled by the US   behalf. This article attempts to provide a sum-
                         Energy Information Administration (EIA) show   mary of that information and a brief look at its
       WHAT NEXT:        that US gas deliveries made up no less than 76%   implications.
       More questions are likely   of Mexico’s total gas consumption on certain
       to arise if Mexico pushes   days in mid-2021.          Gas and pipelines from Texas
       forward with these LNG   This dependence on imports has not discour-  One point that stands out is that for the most
       plans.            aged Mexico from cultivating dreams of becom-  part, the plans are not based on the idea of ramp-
                         ing a gas exporter, however. These dreams were   ing up Mexican gas production in order to meet
                         put on display last month, when Mexican Presi-  European gas demand. Rather, they are largely
                         dent Andres Manuel Lopez Obrador reportedly   based on the idea of gaining access to Mexican
                         told his German counterpart Frank-Walter   territory so that existing and planned gas infra-
                         Steinmeier that the country was ready to help   structure can be used to deliver feedstock to gas
                         Europe resolve its problems with respect to gas   liquefaction facilities within Mexico.



       P4                                       www. NEWSBASE .com                        Week 40   05•October•2022
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