Image credits: Christian Wiediger
News Article

Mexico Offers Natural Gas To Alleviate Europe’s Energy Crisis

By Paloma Duran | Fri, 09/23/2022 - 10:20

In a meeting with German President Frank-Walter Steinmeier, President Lopez Obrador offered to send liquid natural gas (LNG) in an effort to diminish Europe’s energy crisis, which emerged after Russia decided to cut supplies over the past months. However, Mexico has not yet commercially exported LNG so far. In addition, Walter called on the Mexican government to openly oppose Russia’s invasion of Ukraine.

López Obrador and Walter sought to discuss key issues such as bilateral cooperation and, above all, to increase trade relations between the two countries.

Russia's decision to drastically cut gas supplies to several countries has caused an energy crisis throughout Europe. Experts say that Russia aims to show its influence and power after many Western countries imposed sanctions for the invasion of Ukraine. The supply cuts have caused electricity prices to rise significantly across the continent and caused some panic in several countries that needed to find alternative resources for heating and industrial uses, especially as a potentially cold winter approaches.

Experts explained that Mexico's proposal is feasible since LNG is can be shipped to gas plants over long distances. The problem, however, is that the country has never exported LNG commercially, Reuters reported.

In addition, Walter called on the Mexican government to support European countries and oppose the Russian invasion of Ukraine, arguing that the conflict is not only a threat to Europe but also to global democracy. "For us, Germans and Mexicans, for the democratic world to emerge stronger from this conflict, a common position must be held. We must be united in isolating an aggressor that attempts to replace the strength of the law with the law of the strongest,” Walter said.

Although López Obrador has condemned the war, his government has also maintained a relatively neutral stance, refusing to support sanctions and criticizing Western countries for supplying the Ukrainians with weapons.

Currently, Germany is Mexico’s main trading partner in the EU and the fourth in the world, and Mexico is Germany’s most important trading partner in Latin America. In 2021 trade between the two nations totaled US$24,773 million. Moreover, there are more than 2,000 companies with German capital in Mexico, employing over 300,000 Mexicans. Walter’s visit was planned for March 2020. However, due to COVID-19-related traveling restrictions, he had not been able to visit Mexico until now.

The data used in this article was sourced from:  
El Economista, Reuters, MBN
Photo by:   Christian Wiediger
Paloma Duran Paloma Duran Journalist and Industry Analyst