TC Energy Sees Mexico Gas Supply for LNG Projects ‘Eminently Achievable’

SEATTLE (Oil Monster): Canada’s TC Energy Corp. thinks any capacity constraints in Mexico would be solved if the financing for LNG export projects were in place, CEO Francois Poirier told NGI on the sidelines of the CERAWeek by S&P Global Conference in Houston earlier this month.

In Mexico, TC is solidifying partnerships with Mexico’s state power utility Comisión Federal de Electricidad (CFE). TC expects to spend $2.1 billion this year to advance construction of the Southeast Gateway project, as well as the Villa de Reyes and Tula pipelines.

TC is also working on a 500 MMcf/d expansion to the North Baja XPress system to feed the first phase of Sempra Infrastructure’s Energía Costa Azul LNG export terminal currently under construction after regulators granted approval last year.

Poirier said the growing list of projects with partners in Mexico will build a “backbone of infrastructure” that can help modernize the country’s energy systems and support industry. Further connectivity could also help increase U.S. natural gas pipeline exports to Mexico as proposed liquefied natural gas projects continue to stack up on the Pacific and eastern coasts.

However, some Mexico energy experts have questioned whether the country has a clear path to support several terminal projects while still building out critical infrastructure. Poirier said the long lifecycle of LNG development and the pace of collaboration with its Mexican partners means demand and financial support from investors will likely determine the initial cap on Mexico’s export volumes, rather than capacity.

“I don’t see development of the linear infrastructure to deliver gas to LNG terminals for export as the bottleneck,” Poirier said. “I see it as being eminently achievable as long as the LNG projects themselves get sanctioned.”

Courtesy: www.naturalgasintel.com