Mexico Pays Near Asian Prices for Spot LNG Cargoes
Posted on May 14, 2013 in Canada & Mexico, Markets and Competition | Comments Off on Mexico Pays Near Asian Prices for Spot LNG Cargoes
According to articles in Bloomberg and Reuters, due to increased gas demand that could not be met by U.S. gas pipeline supplies, Mexico’s state-owned electric utility Comision Federal de Electricidad recently entered into contracts for spot LNG cargoes at prices near those paid by Asian nations for LNG. The utility historically purchases U.S. gas pipeline supplies at Henry Hub-linked gas prices, but additional U.S. supplies could not be obtained because U.S. pipeline imports into Mexico are running at capacity.