Southeast Gateway Pipeline, Power Plant Startups Signal More Demand From Agua Dulce Natural Gas

Natural gas infrastructure is finally coming to the aid of Mexico’s energy-starved southeast – welcome news for the region that could also have pricing implications in South Texas.

TC Energy Corp’s Southeast Gateway project in Mexico, a 444-mile (with 416 miles offshore), 36-inch diameter pipeline, should begin flowing gas imminently. It would have the capacity to transport 1.3 Bcf/d of U.S. natural gas to Coatzacoalcos, Veracruz, and Dos Bocas, Tabasco.

The project “completed its mechanical work earlier this year, and we are now in the final regulatory processes to conclude and close out the project,” TC Energía Corp. vice president Leonardo Robles, who oversees commercial and business development, said at a recent energy conference.