Mexico to Keep Buying High-Cost Permian Gas, But for How Long?

Pipeline imports into Mexico have fallen nearly 1 billion cubic feet per day recently since a late-August peak of 6.3 Bcf/d, while natural gas prices at the Permian Basin’s Waha Hub concurrently soared by more than $1.70 per million Btu. Coincidence? More than likely, sources in Mexico tell Energy Intelligence. But if prices stay at seven-year highs, it could have a profound, long-term impact on budding market ties between Texas gas producers and Mexico’s growing market.