• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 14 minutes Saudi Fund Wants to Take Tesla Private?
  • 18 minutes California Solar Mandate Based on False Facts
  • 3 hours Starvation, horror in Venezuela
  • 3 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 27 mins Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 hour Oil prices---Tug of War: Sanctions vs. Trade War
  • 6 hours Why hydrogen economics is does not work
  • 2 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 10 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 9 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 hour Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 15 hours What Turkey Sanctions Are Really About
  • 14 hours Saudi Production Cut or Demand Drop?
  • 12 hours Merkel, Putin to discuss Syria, Ukraine, Nord Stream 2
  • 8 hours Saudi Aramco IPO Seems Unlikely
Alt Text

The U.S. Remains The Natural Gas King

The U.S. remained the global…

Alt Text

Ghana Boosts Natural Gas Production

Momentum in Ghana’s hydrocarbons industry…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment




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