May 8, 2018 – Natural Gas Intelligence
Mexico’s LNG Needs Seen Gradually Diminishing as Pipelines Come Online
By Peter de Montmollin
The role of liquefied natural gas (LNG) in the Mexican supply balance is set to evolve after several pending pipelines come in-service later this year, experts say…
Read the full article here: http://www.naturalgasintel.com/articles/114305-mexicos-lng-needs-seen-gradually-diminishing-as-pipelines-come-online
…CFE has supply contracts to receive LNG from the two active LNG terminals. In recent years, Mexico has sourced much of its LNG from Peru, along with several Asian and African countries, but this is changing with new market developments.
Mexico has been the largest destination for U.S. LNG exports since the Sabine Pass terminal in Louisiana began operating in February 2016, according to the EIA. Altamira is well positioned to receive cargos from Sabine Pass and other U.S. export facilities planned along the Gulf Coast.
Manzanillo, in turn, has historically received shipments from Peru, but “deliveries from Sabine Pass to Mexico’s two Pacific Coast terminals… were made far easier (and cheaper) by the recent expansion of locks along the Panama Canal, a project completed in June 2016,” RBN Energy LLC analyst Housley Carr noted in a recent blog post.
Although it is likely to diminish, LNG should still have a role to play in Mexico’s gas supply over the near to medium term…
