Mexico's US Gas Imports Surge as ECA Terminal Nears Commercial Operations

Mexico's demand for US natural gas has been on the rise this summer, driven by the growing operations of the Energía Costa Azul (ECA) LNG export terminal in Baja California. The terminal is moving towards commercial operations, and Mexico's imports have averaged 7.80 billion cubic feet per day (Bcf/d). North Baja pipeline flows have exceeded pre-expansion levels.

The increasing demand has led to a drop in storage levels in Texas, where the Waha hub is seeing lower-than-average inventory. This jolt to the Western market is significant, as it indicates a shift in supply and demand dynamics. Mexico's imports are now exceeding previous highs, and this trend is likely to continue.