Tuesday, May 6, 2014

Natural Gas Exports to Mexico Rise Above 2013 Levels

As warmth begins to lift Mexico's power generation seasonally, the feedstock of choice is natural gas and US exports are expected to rise meaningfully this summer.  Most analysts see YOY exports rising 200 to 300 MMCFD through 2014.  The past week has seen the first sustained YOY increases in daily exports.  It remains a small component of the US natural gas supply/demand equation, but it should contribute to a tighter market this summer, with inventories already at historical lows: