Natural Gas Imports and Exports. Third Quarter Report 1999

The second quarter 1997 Quarterly Report of Natural Gas Imports and Exports featured a Quarterly Focus report on cross-border natural gas trade between the United States and Mexico. This Quarterly Focus article is a follow-up to the 1997 report. This report revisits and updates the status of some of the pipeline projects discussed in 1997, and examines a number of other planned cross-border pipeline facilities which were proposed subsequent to our 1997 report. A few of the existing and proposed pipelines are bidirectional and thus have the capability of serving either Mexico, or the United States, depending on market conditions and gas supply availability. These new projects, if completed, would greatly enhance the pipeline infrastructure on the U.S.-Mexico border and would increase gas pipeline throughput capacity for cross-border trade by more than 1 billion cubic feet (Bcf) per day. The Quarterly Focus is comprised of five sections. Section I includes the introduction as well as a brief historic overview of U.S./Mexican natural gas trade; a discussion of Mexico's energy regulatory structure; and a review of trade agreements and a 1992 legislative change which allows for her cross-border gas trade in North America. Section II looks at initiatives that have been taken by the Mexican Government since 1995to open its energy markets to greater competition and privatization. Section III reviews Mexican gas demand forecasts and looks at future opportunities for U.S. gas producers to supplement Mexico's indigenous supplies in order to meet the anticipated rapid growth in demand. Section IV examines the U.S.-Mexico natural gas trade in recent years. It also looks specifically at monthly import and export volumes and prices and identifies short-term trends in this trade. Finally, Section V reviews the existing and planned cross-border gas pipeline infrastructure. The section also specifically describes six planned pipelines intended to expand this pipeline network and their planned in-service dates