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Demand Reduction May Lead to Mexican Gas Exports to U.S.

A combination of factors such as increased domestic natural gas production, anticipated LNG imports, and a significant decline in consumer demand could produce an excess supply of natural gas in Mexico. Such over-supply could lead to a situation where Me
May 2, 2006

A combination of factors such as increased domestic natural gas production, anticipated LNG imports, and a significant decline in consumer demand could produce an excess supply of natural gas in Mexico. Such over-supply could lead to a situation where Mexico becomes an exporter of gas to the United States in the next two years. World Gas Intelligence today reports that Mexico has cut back on U.S. gas imports by 50% since the first quarter of 2005. The surplus has also prompted Mexico’s Energy Ministry to re-adjust its demand growth forecast to 5.2% each year from 2004 to 2014, which is lower than earlier projections of 5.8% and 7.4%. [Subscription required]

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Adam C. Pollet, Associate
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