Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.

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As part of its effort to displace Russian gas, the Biden administration has committed to sending an additional 15 Bcm of liquefied natural gas (LNG) to Europe this year, or about the volume that is exported each day to Mexico via the Los Ramones pipeline system. By the end of 2022, U.S. LNG export capacity should reach about 14 Bcf/d, from about 13 Bcf/d now. Most spot shipments will find their way to Europe.

Before the war started, the target market for U.S. LNG was Asia. In the coming years, the combined demand volumes of Southeast Asia and China will grow to more...