Page 4 - LatAmOil Week 07 2021

LatAmOil COMMENTARY LatAmOil

(File photo)
Winter storm in Texas has

repercussions further south

Mexico suffering gas and electricity shortages after harsh weather interrupts pipeline deliveries

TEXAS is unique among US states for having a around 1bn cubic feet (28.32mn cubic metres)
transmission grid that operates in isolation, sep- per day, the utility explained.
WHAT: arate from the two other linked networks that According to Argus Media, US shipments
Disruptions in US gas provide electricity to most parts of the US and dropped partly because the winter storm forced
supplies have left Mexico Canada. However, the severe winter storm that some of the Permian basin fields that supply gas
short of fuel and power. has been causing blackouts all over the state did to Mexico to halt production and also caused
not occur in isolation, and its consequences have a number of gas pipelines to freeze. However,
WHY: not remained in isolation either. volumes are not likely to rise quickly, given
Mexico’s gas and power Mexico can certainly testify to that fact. On that Texas Governor Greg Abbott ordered local
providers both depend on February 15, customers of the Federal Electric- producers not to sell any of their gas outside the
Permian basin gas. ity Commission (CFE), the country’s govern- state until February 21.
ment-controlled power provider, reported that
WHAT NEXT: 4.77mn businesses and homes in the Mexican Emergency LNG imports
CFE will look more closely states of Nuevo Leon, Tamaulipas and Chi- Sources with knowledge of the matter told
at gas storage options, huahua had lost power. The outages occurred Bloomberg on February 15 that CFE had
and the president may
have to reconsider plans because cold weather in Texas and other parts responded to the initial drop in pipeline imports
for large storage depots. of the US led to a reduction in the volume of US by abruptly calling a tender to seek a supplier of
natural gas delivered to Mexico by pipeline by LNG..

P4 www. NEWSBASE .com Week 07 18•February•2021