Skip to comments.Japanese firm to build US-Mexico gas pipeline
Posted on 04/10/2013 5:36:18 AM PDT by thackney
Mexicos president says a Japanese company has been tapped to build a pipeline to import U.S. natural gas through Arizona.
President Enrique Pena Nieto is visiting Japan, where he made the announcement about the $460 million project Tuesday.
Japans Mitsui Corporation will build the pipeline, which will run from Tucson to the Mexican border.
(Excerpt) Read more at fuelfix.com ...
Where does the gas come from?
TX,CO or WY?
We have contractors who would love a pipe line dig.
Since when does Mexico hire someone to do construction inside the the USA???????
As I said before, “WTF??????????????????”
Why are we selling off our “energy independence”?
The Japanese firm is very likely to hire local labor for the most of the physical stuff.
The map below is a little dated, 2008, but it shows the major flows of Natural Gas through the country's pipeline systems.
We are reaching the point where we produce more Natural Gas than we use. Exporting surpluses where economical keeps the US with more jobs and more incentive to keep building up the supply chain while our demand grows more slowly with new Chemical Plants, Natural Gas for transportation, etc.
If we close off exports, we will shut down the economic incentive to keep growing supply at this time. Many companies then will invest more in Qatar, Australia, etc instead of building up our infrastructure and supply.
“...We are reaching the point where we produce more Natural Gas than we use.....”
Yes sir. That is correct and the excess capacity depresses prices. This deal will assist in keeping things stable in the energy industry for a while as you’ve alluded. However inside the USA, there is a major multi-billion dollar project in Lake Charles, LA right now being done by SASOL. SASOL has a proprietary process to convert natural gas to syn diesel. Once that project starts up and goes commercial, it should help to diminish some of that excess capacity giving incentive to keep things moving in the gas industry.
OK, why does Mexico need US gas?
Thack, FR wouldn’t be the same without your authoritative comments on the energy industry. Thanks.
Probably the same reason the US still needs OPEC's oil. They don't make enough themselves, yet.
Mexico is an Oil exporting nation. Typically you get substantial amounts of gas with oil.
It varies with the field. Mexico used to be a Natural Gas exporter to the US as. Both their gas and oil production has been falling for a while.
That happens when you nationalize a business.
Obama’s signature is needed to build the Keystone pipeline across the USA/Canada border.....
So—doesn’t Obama also have to sign for this kind of border crossing?
Or is this another cut to American citizens?
Except with respect to facilities covered by Executive Order
10485 of September 3, 1953, and Executive Order 10530 of May 10, 1954, the Secretary of State is hereby designated and empowered to receive all applications for Presidential permits, as referred to in Executive Order 11423, as amended, for the construction, connection, operation, or maintenance, at the borders of the United States, of facilities for the exportation or importation of petroleum, petroleum products, coal, or other fuels to or from a foreign country.
The independent electric companies are undercutting the utilities by 2-2.5 cents/per kilowatt. It is not much but, it saves me about $30/month.
Unfortunetly, we will probably never have gas lines to service our homes like they do around the rest of the countyr
It is tough to get the economics for a new gas line in an old neighborhood. Some would switch to gas, but most will not throw away the working heater to buy a new one, until it needs significant repair.
In a new neighborhood being built, the cost to put in the gas line is cheaper, since it is installed prior to needing to cut up existing streets. And if it is their initially, nearly every home will use it for heating and many for drying and cooking.