• 5 mins Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 10 days The Oil Rig Drilling 10 Miles Under The Sea
  • 10 days Baghdad Agrees To Ship Kirkuk Oil To Iran

Did This Event Just Call a Buy on Natural Gas?

Did This Event Just Call a Buy on Natural Gas?

The full approval of the largest proposed U.S.-Mexico gas export pipeline.

This news came last week from the U.S. Federal Energy Regulatory Commission (FERC). Who granted a full presidential permit to the NET Mexico pipeline project.

The proposed pipe is by far the largest export project on the books. At 2.1 billion cubic feet per day of planned capacity. That's more gas-moving capability than all other U.S. export pipeline projects combined.

The new FERC permit gives project developers NET Mexico Pipeline Partners permission to "site, construct, connect, operate, and maintain a border-crossing facility" in south Texas. The firm last week awarded the construction contract for the 120 mile pipeline that will carry gas from the Eagle Ford shale basin to the border.

Completion of the project is expected in October 2014.

The green-lighting of this massive project is very significant. Especially in light of recent murmurings from U.S. industry groups relying on cheap domestic natgas supply. Just last week Carlyle Group CEO William Conway Jr. told a conference in Detroit that the "rebirth of American manufacturing" depends on low natgas prices.

But U.S. regulators are sending a firm signal that business opportunities come before any national energy agendas. It appears that natgas exports to Mexico will go ahead, despite opposition.

To be sure, the 2.1 bcf/d exports on the NET Mexico line aren't going to send natgas prices through the roof. But combined with other proposed projects, exports to Mexico could amount to 7 bcf/d. Equating to 10% of current U.S. production.

That marginal demand would be enough to support pricing. Events like this approval thus suggest that even if prices don't surge, they're unlikely to head much lower.

There are still some questions to be answered about Mexican gas shipments. Namely, how fast pipeline connections on the Mexican side will become operational.

But it appears that the momentum is now firmly behind growing exports. And stronger prices.

Here's to running for the border,

By. Dave Forest




Back to homepage


Leave a comment

Leave a comment




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