Gas from Mexico: the brightest prospect for interim relief for U. S. consumers
The U. S. natural gas industry is experiencing its greatest shortage and prices are continuing to advance to new highs. The regulated price for ''new'' gas has increased from 50 cents to $1.42 per Mcf plus escalations, and the Carter energy plan would increase this price further to $1.75 per Mcf. However, assuming the most optimistic results from conservation and new discoveries of gas, there remains an urgent need for additional sources of supply. The new government of Mexico is showing great interest in developing its natural gas and oil resources and also showing a new cordial atmosphere towards the U. S. This new atmosphere opens up the possibility for the U. S. to provide finance-capital, steel, compressors, and drilling equipment in exchange for Mexican natural gas. The transportation facilities for natural gas from Mexico will be less costly than from Alaska's North Slope. Equally important, gas can be brought in from Mexico at a much earlier date than from the North Slope. Pemex (Petroleos Mexicanos) has announced plans to construct a 780-mile, 48-inch pipeline to transport natural gas from the Reforma sweetening plant at Cardenas, Chiapas, to Reynosa where it can connect with U. S. pipelines at McAllen, Texas. Shipments of gas could begin within two or three years if satisfactory gas purchase contracts, financing, and government approval can be completed promptly. This pipeline is estimatedto cost in the neighborhood of $1 billion and could be completed by 1979. Methods of delivering natural gas to the U. S. from the North Slope, Mexican oil and gas reserves, and the economics of the Pemex gasoline and possible U. S. financing are discussed. (MCW)
- Research Organization:
- Edward Falck and Co., Washington, DC
- OSTI ID:
- 7212448
- Journal Information:
- Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 100:3; ISSN PUFNA
- Country of Publication:
- United States
- Language:
- English
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AGREEMENTS
BILATERAL AGREEMENTS
CHARGES
CONSUMPTION RATES
DEMAND FACTORS
ENERGY POLICY
ENERGY SHORTAGES
ENERGY SOURCES
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GASES
GOVERNMENT POLICIES
INTERNATIONAL AGREEMENTS
MARKET
MEXICO
NATURAL GAS
NORTH AMERICA
PETROLEUM
PIPELINES
RESERVES
USA