The United States is partnering with Mexican to help the USMCA deal on a high priority. The Trump government has recently announced to raise a 5% tax on all goods from Mexico. In addition, these tariffs would significantly rise to 25%.
For example, Mexico is the largest buyer of piped gas and Canada is the second buyer for our burgeoning LNG business. Mexico registers around 60% of U.S. gasoline exports and 20% of diesel sales.
In the year 2018, Mexico region registers an import of around 1.7 Tcf of piped gas from the United States. This was around 55% higher as compared to LNG exports. In addition, Mexico holds 5-7% of total United States gas production.
These exports can be a boon to United States producers, exporters, and pipeline companies allowing even cheaper U.S. oil and gas to flow into Mexico.
The United States supplies around 70% of the gas in Mexico with a tremendous growth rate. Rejecting domestic production, Mexico holds the maximum for incremental oil and gas demand of all OECD partners.
The United States LNG confirms to continue to stay essential in Mexico. Their pipelines are short in size and most of the regions demand water-shipped supply to use gas.
Without the Mexican outlet, United States domestic gas cost remains unstable and lower by 30-35%. Minus to any strong export opportunity, most of the firms could confirm bankrupt.
Having said that, they continue to underappreciate by several of own users and contract-makers.
Most of the environmental communities are pro-gas exports in particular. This results in natural gas supporting to low emissions and back up wind and solar.