2019 US Mexico Agenda

The U.S. Energy Information Administration is forecasting growth in U.S. natural gas exports in the near-term, which is projected to continue well into the next decades. This talk discusses current and future U.S. natural gas market trends and the effect on exports.

•Cross-Border Energy Infrastructure and Trade
•Policy report on Social Conflicts Around Infrastructure Projects in Mexico

1. Which price index will Mexico gas purchases rely upon? Near term and long term? HH, HSC, Waha, Aqua Dulce, other.

2. Do you see a local price index developing? What would need to happen for this to take place?

3. Will Mexico demand increase faster or slower than current market expectations? And will US production be able to keep pace?

4. How does CFE and Pemex controlling the majority of capacity impact the Mexican market?

5. Should Mexico move toward a single operator of all its pipelines? Or is a decentralized North American model preferable?

6. Which sectors will experience the most demand growth? Residential, Commercial, Industrial? Which one will affect the market the most and in what ways? (i.e. – only 14% of households in Mexico have access to air conditioning.)

7. Will credit be a concern? If so, how will credit concerns with Mexican buyers be addressed? Will it impact the ability to do longer term sales agreements?

8. Do end users in Mexico have plans to take pipeline capacity on pipelines within Mexico. Is this possible with CFE holding most of the capacity?

9. What things need to happen to signal the market to incentivize production growth and drilling?

10. How has the market changed since this conference last year?