Mexican natural gas implications for the US market

Despite the current glut of natural gas in the USA, much future demand may not be met unless supplementary sources of supply are developed. Mexico is not now an important supply source but a September 1979 agreement may mean that large volumes of Mexican gas will be exported to the USA in the future. This paper presents a modified version of the out-of-kilter algorithm used to examine the possible impacts of this gas, with particular attention given to identification of those areas most likely to benefit from these supplemental supplies. The results indicate that if Mexican natural gas is introduced to the US pipeline network in either southern Texas or southern New Mexico in large quantities, serious pipeline capacity problems may inhibit the use of Mexican supplies as a supplementary source.