Mexico Pacific announced on Monday (11/27) that they had signed a turnkey contract for the construction of the Sierra Madre pipeline through 500 miles of the Chihuahuan and Sonoran deserts. The pipeline is intended to provide 2.8 Bcf/d of feedgas for the proposed Saguaro Energia LNG export facility. The Sierra Madre pipeline would connect with ONEOK’s proposed Saguaro Connector pipeline at a new international border crossing south of Fort Hancock, Texas. Together, the two pipelines would bring natural gas from the Permian Basin to the greenfield LNG facility, which would primarily produce LNG for export to Asian markets. While Saguaro Energia has yet to reach FID on the LNG facility, the agreement for Bonatti and GDI Sicim to provide engineering, procurement, and construction for the Sierra Madre pipeline represents a step closer toward a decision. For the year to date, exports to Mexico have averaged 6.2 Bcf/d so adding an incremental 2.8 Bcf/d in capacity would provide a substantial boost to overall US to Mexico exports.
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Down in Mexico - New Pipelines and Power Plants Spur Ever-Higher Natural Gas Exports to Mexico
With all the talk about U.S. LNG exports and plans for more LNG export capacity, it can be easy to forget that more than 6 Bcf/d of U.S. natural gas — mostly from the Permian and the Eagle Ford — is being piped to Mexico. That’s more than 3X the volumes that were being piped south of the border 10 years ago, a tripling made possible by the buildout of new pipelines from the Agua Dulce and Waha hubs to the Rio Grande and, from there, new pipes within Mexico. And where is all that gas headed? Mostly to new gas-fired power plants and industrial facilities — a handful of new LNG export terminals being planned on that side of the border will only add to the demand. In today’s RBN blog, we discuss the ever-increasing flows of gas to Mexico and the tens of billions of dollars of new infrastructure making it all possible.
Mexico Pacific Inks Additional Deal with ExxonMobil
Tijuana Taxi - New Gas Pipelines From the Permian to Northwest Mexico Are Needed to Meet Demand
Mexico’s state-owned Comisión Federal de Electricidad (CFE) and private-sector developers of LNG export terminals have been aggressively advancing new natural gas-consuming projects in Northwest Mexico. But while plans for a number of new pipelines to help bring in gas from the Permian are on the drawing board, it remains to be seen if they can be built as quickly as they would need to be to avert a potentially ugly competition for gas supplies. In today’s RBN blog, we discuss the gas-demand and gas-delivery projects now under development in Northwest Mexico.
