The concept that Mexico might one day become an export route for US shale gas bound for Asian LNG markets has taken on a new lease of life. One project has reached final investment decision (FID). Another claims it will do so within months.
The idea has merit. Exports of US gas into Mexico are rising so fast that Mexican LNG imports have collapsed; LNG from the Pacific coast would not need to traverse the Panama Canal; and there is government support. But will investors accept the political risk of a country in thrall to a populist, left-wing president? And what about Mexico’s own gas needs?
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