U.S. and Texas, Key Allies to Mexico’s Natural Gas Demand Growth
Wed, September 13, 2023
Thanks in large part to the innovation and resiliency of Texas producers and pipeline operators, the United States is leading the global natural gas market. As the largest natural gas producer in the world, the United States has ignited a revolution in energy exports, meeting energy demand both at home and abroad.
According to the U.S. Energy Information Administration (EIA) U.S. natural gas exports to Mexico broke a record in June, reaching 6.8 billion cubic feet per day (Bcf/d) and surpassing the previous record set in June 2021 by a 100 million cubic feet per day. Amid surging power demand during the hot summer, Mexico turned to U.S. operators and producers to meet the spike in demand.
Continuing a forward momentum in production and exports since the pandemic, the first half of 2023 saw average exports of 5.9 Bcf/d, mirroring the post-pandemic resurgence seen in the first half of 2021.
The United States and Texas have proven to be strong and reliable trade partners through their partnership with Mexico and with other global allies. As summer heat temperatures rose, the U.S. and Texas not only provided enough energy for Americans and Texans, but Mexican and allies abroad as well with natural gas deliveries to U.S. liquified natural gas export facilities reaching an average of 12.8 bcf/d in the first six months of 2023.
Following a 14 percent growth in its natural gas sector in 2022, Mexico’s natural gas production remained largely the same in the first half of 2023. As demand rose in 2023, U.S. imports of natural gas via pipeline increased 3 percent (0.2 Bcf/d).
Overall, natural gas exports to Mexico have grown in recent years, strengthened by Mexico’s expansion of its domestic pipeline network. The Wahalajara system, which connects the Waha hub in West Texas to Guadalajara and other population centers was completed in 2020, and in 2021, the Mier-Monterrey pipeline, carrying gas from South Texas to the Monterrey Hub was expanded. That same year, the Samalayuca-Sasabe pipeline which runs from the Permian Basin to eastern New Mexico and Northwestern Mexico, entered into service.
Texas operators and producers form a key part of a strong and reliable trade alliance meeting energy demand globally and for key trading partners like Mexico. As Mexico’s power sector continues an average 3 percent growth, the United States and Texas will be at the ready to meet the rising demand.