Unless you are living under a rock, you know that the government has been shut down for about a month while Pres. Trump and Congress fight over funding for building a wall along the U.S.-Mexico border. Not everyone is looking for a blockade, though.
The Houston Chronicle reported on January 20 that a bipartisan group in Congress is aiming to send more American gas to Mexico. The effort is led by U.S. Rep. Henry Cuellar (D-TX), whose district is right on the Mexican border. He wants to boost funding for the North American Development Bank, which lends money for cross-border pipelines and natural gas power plants.
The bank was created following the North American Free Trade Agreement in 1994, and it is jointly funded by both countries. Mexico has some struggles with producing natural gas, and its infrastructure has had some horrendous troubles as of late. Just last week a gasoline pipeline in the Mexican state of Hidalgo exploded and killed several people.
America has long exported a significant amount of natural gas to Mexico, and the amount has been growing rapidly. Back in 2011, America exported around one billion cubic feet per day (bcf/d). Now exports are around 4.2 bcf/d. Meanwhile, pipeline capacity has gone from 4 bcf/d to over 10 bcf/d in that same time period. Several key pipelines were opened up in 2018, and hopefully in the coming months more of the unused capacity will be filled up.
Not a lot of Appalachian gas will make it down to Mexico, but Texas and other border states are having to look south for customers in large part because the Marcellus Shale has filled up markets in Northeast America that used to get their gas from southern states. A lot of the gas produced in the Marcellus in recent years has come from drilling rights procured by Pennsylvania’s own Cimmaron Land. If you need our services just call (412) 212-7517.