• 3 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 5 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 6 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 7 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 8 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 9 hours Rosneft Signs $400M Deal With Kurdistan
  • 11 hours Kinder Morgan Warns About Trans Mountain Delays
  • 18 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 23 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production

One Week, $2 Billion Invested In This Next Energy Hotspot

One Week, $2 Billion Invested In This Next Energy Hotspot

Under the heading of "what's next in energy", there's one standout part of the sector these days.

Mexico.

Much of the energy world has been excited about newly-opened E&P opportunities in the country. But two deals last week show that investment dollars are in fact pouring into a completely different part of the business here -- natural gas pipelines. Related: How Russia’s Energy Giant Imploded

The action kicked off with a major project finance package for Mexico's Fermaca Enterprises. With the midstream firm securing $820 million for a new pipeline between Chihuahua and Durango -- from a consortium of lenders including Citigroup, Banco Santander, and Goldman Sachs.

The aim of Fermaca's new project is simple. Bring abundant natural gas from the U.S. into the industrial heartland of Mexico. With the project expected to carry 1.5 billion cubic feet per day of gas from Texas, starting in the first half of 2017.

And this isn't the only project in the region attracting attention from deep-pocketed backers. Related: Could This Mark The Renaissance Of North Sea Oil And Gas?

Just days after the Fermaca deal, U.S. utility Sempra Energy announced that its Mexican subsidiary IEnova will buy three natural gas pipelines in northern Mexico -- for a full $1.33 billion.

The deal also includes pipelines for the transport of natural gas liquids, along with storage infrastructure.

Sempra had already been moving aggressively into Mexico. Owning half of the Los Ramones pipeline project -- which is expected to be a major artery carrying natural gas from America. And last week's deal shows the company is willing to bet serious money on the burgeoning midstream sector in this part of the world. Related: Exxon Pipelines Relieving The Pressure In Texas And Louisiana

Of course, all of this is great news for U.S. natural gas producers. Who are seeing a potentially huge source of demand emerging as pipelines into Mexico open up. By some estimates, Mexican consumers could take up to 10% of total U.S. natgas production over the next two to three years.

Whether midstream or E&P, this is a space that's going to create some of the biggest shifts -- and opportunities -- in global energy markets. Stay tuned.

Here's to going south,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News