Will delays be the standard for pipeline construction?

Since 2016, local opposition has delayed construction on much-needed gas pipeline infrastructure intended to serve the northwest, central and western regions of Mexico. The delays come at an inopportune time. Domestic gas production declined by 14% year-over-year despite continued demand-side growth. This has left Mexico increasingly reliant on low-priced US piped imports. But some regions, such as the Yucatan Peninsula, have been severely limited from accessing gas supply. As delays continue to constrain the Mexico market, the country has turned to more expensive LNG to fill the void. Since 2016, LNG imports increased by 76%, moving from 0.5 bcfd to 0.8 bcfd in 2018. This Insight explore the controversy behind Mexico's pipeline delays, impacts and our best assumption when they will come online.