While global gas markets face strong headwinds, Mexican gas demand is expected to increase by nearly 30%, or 1.65 bcfd, over the next five years. The power sector accounts for the bulk of this growth as oil is displaced by gas. Load growth is also expected to be strong as end-user power tariffs continue to fall. Meanwhile, production continues to fall and LNG cargoes, especially in the Gulf of Mexico, are diverted. As a result, US imports will step in to meet the growing demand. Over the next five years, imports from the US surge by nearly 2.3 bcfd to 5.2 bcfd. Longer term, the drop in oil prices may delay additional associated gas production from the deepwater Perdido area.