Mexico plans to launch a tender for constructing a natural gas pipeline shortly

Published on : Friday, November 29, 2019

Mexico plans to launch a tender for constructing a natural gas pipeline between the Tuxpan port on the eastern coast to Cancun and Merida on the Yucatan peninsula shortly. This was announced by the Mexican President Andrés Manuel López Obrador at a news conference yesterday.


The new natural gas pipeline is aimed towards improving electricity generation in the popular tourist cities in the area, including Cancun.


Mexico’s gas production cannot keep up with the growing demand. Mexico imports a lot of natural gas from the US, and American natural gas exports to Mexico are at a record high.


The U.S.-Mexico natural gas trade is dominated by pipeline shipments from the United States and Mexico. U.S. natural gas exports to Mexico totaled 2,090 billion cubic feet (Bcf) last year. Of that, 90 percent was sent through pipelines south of the border. Mexico was also the second-largest destination for the U.S. exports of liquefied natural gas (LNG) last year, after South Korea.


In August, Mexico and several private energy infrastructure companies agreed to resolve a dispute over contracts for natural gas pipelines that the previous Mexican administration had signed.


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