Mexico Could Surpass Canada as the Leading LNG Exporter

Mexico is swiftly emerging as a frontrunner in the race to become a prominent exporter of liquefied natural gas (LNG) in the region, surpassing Canada. This accelerated timeline is a result of Mexico's government finalizing a deal with New Fortress Energy, a US-based energy company, in 2022.  

Despite having abundant domestic gas reserves, Canada is entering the gas export sector for the first time. E&C Consultants reports that Canada is currently constructing its inaugural LNG export terminal in British Columbia, with operations set to begin in 2025. The primary source of gas for export will be the Western Canada Sedimentary Basin (WCSB), encompassing regions like British Columbia, Alberta and Saskatchewan. While Canada's efforts are significant in positioning the country as a key LNG supplier, Mexico's agreement with NFE could allow it to lead in LNG exports.

Although Mexico's initial LNG export capacity is relatively small at 1.4 million tons per year compared to Canada's 14 million tons, recent developments indicate substantial advancements in Mexico's LNG sector. Construction is underway for five rapid LNG units, two of which are in Altamira, establishing it as a pivotal LNG hub in Mexico. This represents a significant milestone in Mexico's pursuit of LNG expansion. Each unit has the capacity to produce 1.4 million tons per year of LNG.

New Fortress Energy Mexico has already established agreements with other international private energy companies, including Sempra Infrastructure and TC Energy to carry out the energy projects proposed by Mexico’s president. "These projects would enable the country to potentially optimize the use of existing pipeline systems, provide additional sources of LNG supply for isolated markets in Mexico and continue to expand LNG supply to the global market,” says CFE, as previously reported by MBN.