Exporting natural gas to Mexico and how it effects the US domestic market
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Exporting natural gas to Mexico and how it effects the US domestic market


The United States has become a major exporter of natural gas to Mexico in recent years, driven by the fracking boom that has increased domestic gas production. Here are the key points about U.S. natural gas exports to Mexico:

  • Pipeline exports of natural gas from the U.S. to Mexico have risen dramatically, from an average of 1.8Bcf/d in 2013 to 6.2Bcf/d in 2022. So far in 2024, we're averaging approximately 5.0Bcf/D.
  • In 2022, imports from the U.S. met 69% of Mexico's natural gas demand, with most of the gas coming from the Permian Basin and Eagle Ford shale plays in Texas.
  • This growth has been facilitated by the construction of new pipelines from the Waha and Agua Dulce hubs in Texas across the border into Mexico.
  • Mexico's domestic natural gas production has declined by 47% since its peak in 2010, increasing its reliance on U.S. imports.
  • U.S. companies like TC Energy and Energy Transfer have built extensive pipeline networks transporting gas from Texas into northern and central Mexico.
  • Mexico is now looking to develop liquefied natural gas (LNG) export terminals on its Pacific coast to re-export U.S. gas supplies to lucrative Asian markets, avoiding the Panama Canal.
  • However, the Biden administration recently paused pending permits for non-free trade LNG exports, including several proposed projects in Mexico, while conducting further analysis on climate impacts.

So in summary, booming U.S. gas production coupled with declining Mexican output has led to rapidly rising pipeline exports to Mexico, with plans for LNG re-exports facing new regulatory scrutiny.