Mexican competition gas to tighten Southwest markets: Bentek

Thursday, May 23, 2013

Increasing competition for Texas natural gas supplies because of rising Mexican demand will tighten Southwest markets over the next five years, according to a report from Bentek Energy released Thursday.

This is because both Mexico and the Southwest are expected to use the same gas pipelines, with any remaining Southwest capacity ultimately going to serve the growing Mexican demand, Bentek said. Bentek is a unit of Platts.

"Competition for this available pipeline space is expected to put upward pressure on Southwest region gas prices, which will signal the need for additional pipeline capacity into the region," the report said.

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