September 1, 2006
Mexico is banking on liquefied natural gas (LNG) to break a double stranglehold on the nation's fast-growing natural gas market: the state oil company, Pemex, has a near-monopoly on sales within Mexico and imports are totally dependent on pipeline supplies from the US. Absent enough cash to develop the country's reserves, and with constitutional barriers to foreign investment in the oil and gas sector, the Mexican government is backing plans for as many as a half-dozen receiving terminals for the fuel, representing several billion dollars in investment. Whatever the country doesn't consume, supporters figure can be sold in the US. The US, in turn, imports the bulk of its natural gas from Can
LNG is shaping up to be an important technology for supplying natural gas to North America, and Mexico is positioned to play a pivotal role.