U.S. Natural Gas Pipeline Exports to Mexico Dipped in 2022

SEATTLE (Oil Monster): The latest data published by the Federal Energy Regulatory Commission (FERC) indicates that U.S. natural gas pipeline exports to Mexico declined during the previous year.

According to the FERC 2022 State of the Market Report, U.S. LNG exports rose significantly by 8.6% over the prior year to average at 10.6 Bcf/d in 2022. The demand growth was mainly led by boost in demand from European market.

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Meantime, the natural gas pipeline exports to both Canada and Mexico declined during the previous year. The pipeline exports to Mexico dipped by 3.7% year-on-year to average at 5.7 Bcf/d, FERC noted. The natural gas consumption growth in Mexico has been driven by the electricity and industrial sectors. The growth has been led by surge in pipeline imports from the U.S., the Commission stated.

The pipeline exports to Mexico has recorded marginal rise so far this year, averaging around 5.9 Bcf/d during the month of March this year. FERC expects the exports to post long term growth.

The international natural gas prices witnessed notable rise, primarily on account of tight supplies. This has further incentivized U.S. LNG exports. The expansion of multiple LNG export facilities led to boosted capacities, helping the U.S. to serve the growing international demand for LNG.