Mexico Foresees 27% Surge in Natural Gas Demand by 2031

SEATTLE (Oil Monster): The Mexican Energy Ministry predicts massive growth to natural gas demand during the 15-year period from 2016 to 2031. The natural gas demand in the country is forecast to witness growth of 26.8% over the period.

As per Ministry forecasts, the country’s domestic natural gas demand is expected to hit 8.32 Billion cubic feet per day (Bcf/d) during the current year. This demand may rise further to hit the peak of 9.87 Bcf/d in 2028 and drop slightly to touch 9.66 Bcf/d in 2031. The Ministry projects the demand to record a compounded annual growth rate of 1.6%. It must be noted that the Mexican gas demand had totaled 7.62 Bcf/d in 2016.

The power sector demand for natural gas will continue to remain strong, whereas the demand for natural gas in the oil industry is expected to decline.

The northeast region of Mexico will continue to remain as the top gas-consuming region in the country. The regional demand is projected to see rampant growth from 2.5 Bcf/d in 2016 to 3.17 Bcf/d by 2031. According to Energy Ministry forecast, the south and southeast regional demand is also expected to post strong growth from 2.42 Bcf/d to 2.81 Bcf/d over the period. Also demand in least consuming northwest region is expected to double over the 15-year period to touch 1.32 Bcf/d.

The US will be the biggest beneficiary of growing natural gas demand in Mexico. As per projections, the US is very much likely to become a net exporter of natural gas in this year for the first time in more than 60 years, mainly on account of increased exports to Mexico. The US LNG capacity eye to become the world’s third largest by next year. By that time, the country’s pipeline capacity to Mexico is expected to double.