US ‘turns on’ Mexico: Natural gas purchases reach historic high in 2024

Mexico imported 6.4 billion cubic feet per day of US natural gas between January and April of this year, which represented its highest level for a similar period Since records exist, according to data from the United States Energy Information Administration.

Purchases of U.S. natural gas were 8.25 percent higher than those seen in the same period but in 2023, which represented its largest growth in the last three years.

The United States is the world’s leading producer of natural gas.according to Statistical Review of World Energy 2023.

During the first four months of the year, the US exported 21 thousand 95 million cubic feet of natural gas per day globally, of which 56 percent were sold via ships and trucks and 44 percent were supplied via pipelines.

How much gas did the US export to Mexico?

Of the exports that the US made through pipelines, 64.7 percent were destined for Mexicowhile the remaining 35.3 percent was distributed to Canada.

The US natural gas market has begun to diversify its business, since while in 2016, it sold up to 60 percent of its natural gas to Mexico, currently, the Mexican market only represents 28.4 percent of its exports.

Among the countries to which the United States sells the most natural gas are the Netherlands (13.44 percent of the total); France (12.29 percent); the United Kingdom (6.83 percent); Japan (6.53 percent); Spain (5.91 percent); South Korea (5.27 percent); Turkey (5.26 percent); Germany (5.08 percent); Italy (4.24 percent); India (4.12 percent), and China (3.62 percent).

According to the document Natural gas outlook 2023-2037prepared by the Ministry of Energy, Mexico is the third country in the world that imports the most natural gas by pipeline, only surpassed by China and the United States.

The Ministry of Energy reported that 58.9 percent of natural gas is used to generate electricity, while 23.2 percent is used in the oil sector; 16.8 percent in the industrial sector, and the rest is used in areas such as the residential, services and motor transport sectors.

Gas production in Mexico advances: How much has it grown in 2024?

To meet domestic demand, domestic natural gas production rose to 3.845 billion cubic feet per day during May, representing an increase of 2.4 percent compared to April.

Around 95 percent of this production is provided by Petróleos Mexicanos (Pemex) while the rest is contributed by private companies.

The field that contributed the most to national natural gas production was Quesqui, with 570 million cubic feet per day, followed by Ixachi (507), and Akal (355).