As Waha natural gas prices languish below $1/MMBtu, attention is increasingly turning to Mexico as a possible outlet for incremental gas volumes from the Permian Basin.

Mexico LNG

With more than 6 Bcf/d of LNG export projects in varying stages of development, Mexico presents an interesting opportunity to move West Texas gas to the global LNG market, according to Poten & Partners’ Sergio Chapa, senior LNG analyst.

“The whole sales pitch there is that you’re just re-exporting U.S. natural gas,” Chapa told NGI on a recent episode of the Hub and Flow podcast. “There are several cross-border pipelines that send natural gas from the Permian Basin and the Waha hub to various destinations in Mexico.”

Plans are underway to expand the cross-border capacity as well.

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