Mexico's opening of the gas sector is driving a rapid expansion of its pipeline network.
While the opening of the oil sector was the most high-profile feature of President Enrique Pena Nieto's ambitious 2013-14 energy reforms, the plunge in the global price of crude and the oil industry's dim medium-term outlook have chilled the enthusiasm of domestic and foreign investors. However, the equally radical liberalisation of the natural gas sector has somewhat rosier prospects, given stagnant domestic production and the need for increased pipeline infrastructure to feed the industrial sector's hunger for US gas.
Cheap US natural gas could reduce electricity prices by as much as 13.0%, boosting manufacturing production by up to 3.9%.
Greater availability could boost the auto industry, in particular, where gas makes up 29% of energy input.
Imports of Texan gas should eventually allow the reduction of more expensive purchases of LNG from further afield.
