Thank Mexico for a U.S. Gas Market That Isn't Even More Terrible
- Cross-border capacity predicted to triple by end of 2019
- Pipeline shipments jumped 60% in August from end of last year
A series of pipes direct natural gas in Bismarck, North Dakota.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Think the slide in U.S. natural gas prices has been bad? Well, it would be even worse if Mexico wasn’t picking up at least some of the slack.
Gas flowing south over the border jumped 60 percent to average a record 3.26 billion cubic feet a day in August from the end of last year. Increased exports, helped by new pipelines, are shrinking the discounts for supplies at the West and South Texas gas hubs versus the U.S. benchmark.