Strong Mexican demand for LNG from Sabine Pass has surprised the gas industry in the United States, key figures told conference delegates in Houston on Wednesday. However, the US cannot count on long-term demand from Mexico and Latin America, speakers argued.
Rob Smith, deputy assistant secretary of oil and gas at the US Department of Energy, told the CWC World LNG and Gas Americas Summit on Wednesday that Mexico’s appetite for US LNG was “one of the more surprising developments” of the budding industry.
“I didn’t anticipate so many [LNG] cargoes landing in Mexico,” said Smith, citing the extensive cross-border pipeline capacity that already exists between the two countries. “They’re landing on Mexico’s Pacific Coast, creating arbitrage opportunities for the offtakers of LNG cargoes from Sabine,” added Smith.
Mexico’s Manzanillo LNG terminal could receive monthly LNG cargoes until 2018. (Samsung C&T)