Commodities
Mexico Pipeline Deal Shines Light on Gato Negro LNG Project
A proposed natural gas pipeline deal between Esentia Energy and TC Energy has put a spotlight on the Gato Negro LNG project in Mexico.
The pipeline would connect the Permian Basin to Mexico's Pacific Coast, providing a link for the 9-MMtpa (1.2 Bcf/d) export facility at Manzanillo.
Gato Negro LNG is expected to come online in the early 2030s and would be one of Mexico's largest midstream projects ever.
The project would provide direct access to Asia-Pacific LNG markets, taking advantage of the shorter shipping time from Mexico's west coast compared to other U.S. export terminals.