Monday, July 8, 2013

The importance of the US natural gas pipeline to Mexico

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One of the problems that developing countries have to deal with is the increasing demand for energy. As people’s financial capacity to buy consumer electronics and appliances increases, so does their appetite for energy to power those devices. High energy consumption equals a high demand for fuel used for power generation. This is probably why these countries have been importing natural gas and other fuels from other countries at a higher rate.

Pipeline (Image courtesy from
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Mexico is one such country looking to import more natural gas as possible, especially since most of its electricity comes from thermal plants, which use natural gas as a fuel source. The country used to import natural gas from other countries, but it is now increasingly reliant on US natural gas exports. In fact, the Los Ramones pipeline, which stretches from southern Texas to Guanajuato, was developed due to Mexico’s increasing demand for natural gas exports.

As of 2012, natural gas delivered via US pipelines accounted for 80 percent of Mexico’s natural gas imports, which makes the US a valuable supplier. Furthermore, Mexico benefits financially from the US as natural gas imported from the latter is fairly cheap.

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