Daily Energy Report

Mexico’s gas imports from the US, Major US crude build, Offshore wind woes, EU’s “financial engineering,” India coal expands, EV sales slow, EU carbon permit bust, India natural gas growth, and more.

Chart of the Day: Mexico’s gas imports via Pipeline from the US at record High

Summary

Figure (1) above shows trends in Mexico’s monthly natural gas imports from the US. Excluding the COVID-19 period, imports were hitting record after record. Gas imports form the US reached a record in 2023. EOA estimates that imports in January were a record high YOY.

EOA’s Main Takeaway

Gas demand in Mexico has been rising rapidly in recent years, fueled by urbanization on one hand and cheap US gas on the other. A large number of gas power plants have been built in recent years. While demand for natural gas is expected to continue to grow, finishing the LNG terminals that utilize US gas will increase imports markedly. In fact, if the Biden administration makes the current pause on licensing new LNG permanent, Mexico can build more LNG plants with the support of US producers. US producers will send the gas via pipeline. 

Story of the Day

EIA: Major Build in US Crude Inventories

Summary