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Mexican LNG offers sea change

Shortening shipping times could deliver substantial gains to exporters, but they would still need to navigate the country’s complex regulation process

The idea of shipping US gas to Mexico for liquefaction and exporting onwards to Asia is gaining traction, especially in the wake of US infrastructure firm Sempra Energy’s FID on its Energia Costa Azul (ECA) LNG export project in November. Other projects have been proposed for Mexico’s Pacific Coast that would also use US gas as feedstock. But Mexico’s changing regulatory environment and policy of favouring state-owned energy companies presents a potential deterrent for foreign players. That said, for some companies the advantages of shipping from Mexico may still outweigh the risks involved. Ogan Kose, a managing director and global lead for consultancy Accenture, estimates that the risk rel

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