Quantcast
Environmental News for a Healthier Planet and Life

TransCanada's Next Move? Pipeline to Mexico Carrying U.S. Fracked Gas

Energy
TransCanada's Next Move? Pipeline to Mexico Carrying U.S. Fracked Gas

TransCanada, the owner of the recently-nixed northern leg of the Keystone XL tar sands pipeline, has won a bid from Mexico's government to build a 155-mile pipeline carrying gas from hydraulic fracturing in the U.S. to Mexico's electricity grid.

The company has benefited from Mexico's energy sector privatization promoted by the U.S. State Department, the same agency that denied a permit to the U.S.-Canada border-crossing Keystone XL. TransCanada said in a press release that construction on the $500 million line will begin in 2016 and it will be called the Tuxpan-Tula Pipeline.

TransCanada said in a press release that construction on the $500 million line will begin in 2016 and it will be called the Tuxpan-Tula Pipeline. Photo credit: Shutterstock

This is not the first pipeline system TransCanada will oversee in Mexico. The company already owns four other systems, with two operational and two under construction. But it is the first pipeline the company will own during Mexico's energy sector privatization era, a policy in place due to constitutional amendments passed in 2013.

“By 2018, with the Tuxpan-Tula Pipeline, TransCanada will have five major pipeline systems, with approximately US$3 billion invested in Mexico,” TransCanada stated in a press release. “We will continue to pursue additional opportunities for new energy infrastructure projects in Mexico going forward.”

Tuxpan-Tula connects to a series of pipelines originating in Nueces, Texas and eventually crossing the U.S.-Mexico border via the Sur de Texas–Tuxpan gas pipeline, a $3.1 billion project slated to cross underwater through the Gulf of Mexico. The set of pipelines will move gas obtained from fracking in Texas' Eagle Ford Shale to Mexico's electricity grid.

The lines are part of a broader package of 12 gas pipelines and infrastructure projects worth $10 billion planned by the Mexican government, which, if all built, will total more than 3,100 miles of pipelines.

Though the Mexican government publicly denied the U.S. had any involvement in helping to usher in privatization of Mexico's energy sector, as first revealed by DeSmog, it appears the State Department has tracked gas pipeline developments in Mexico closely.

In the June 2015 edition of the State Department's Overseas Business Insights newsletter, an article titled “Mexico: Pipeline and Electricity Tenders” read:

"The natural gas pipeline project tenders will enable Mexico to import more natural gas from the U.S. via onshore and offshore pipelines. Mexico’s current natural gas production is 6.6 billion cubic feet per day (bcf/d), while imports from the U.S. in 2015 average approximately 1.2 bcf/d."

The State Department also published an article about the status of Mexico's energy grid privatization efforts in the July 2015 edition of Overseas Business Insights.

Global Shale Gas Initiative

As Bloomberg explained in a Nov. 10 article, Mexico's consumption of U.S. fracked gas will keep the U.S. shale gas industry and fracking afloat during a time of depressed prices on the market.

That’s the sleeper story,” Richard Ennis, head of natural resources at ING Capital LLC, told Bloomberg. “In Mexico, if you look at how much natural gas they use, it’s tiny. All these new pipelines are going to triple their daily use. It’s pretty dramatic.”

The State Department's push to privatize Mexico's energy and electricity sector and the flooding of Mexico with U.S. shale gas fits under the broader umbrella of its Unconventional Gas Technical Engagement Program, formerly known as the Global Shale Gas Initiative.

YOU MIGHT ALSO LIKE

World’s Biggest Economies Still Backing Fossil Fuels

25 Million Americans at Risk From Oil Train Traffic in Their Communities

Exxon + 49 Other Big Polluters Set to Be Investigated for Causing Extreme Weather Events

Global Coal Use Falling Fast, Arch Coal Could Face Bankruptcy

U.S. returns create about 15 million metric tons of carbon dioxide emissions. manonallard / Getty Images

Many people shop online for everything from clothes to appliances. If they do not like the product, they simply return it. But there's an environmental cost to returns.

Read More Show Less

EcoWatch Daily Newsletter

Climate Envoy John Kerry (L) and President-elect Joseph (R) are seen during Kerry's ceremonial swearing in as Secretary of State on February 6, 2013 in Washington, DC. Alex Wong / Getty Images

By Dolf Gielen and Morgan Bazilian

John Kerry helped bring the world into the Paris climate agreement and expanded America's reputation as a climate leader. That reputation is now in tatters, and President-elect Joe Biden is asking Kerry to rebuild it again – this time as U.S. climate envoy.

Read More Show Less

Trending

Scientific integrity is key for protecting the field against attacks. sanjeri / Getty Images

By Maria Caffrey

As we approach the holidays I, like most people, have been reflecting on everything 2020 has given us (or taken away) while starting to look ahead to 2021.

Read More Show Less
A pair of bears perch atop Brooks Falls in Alaska's Katmai National Park, about 100 miles from the proposed Pebble Mine site. Luis Sinco / Los Angeles Times / Getty Images

By Andrea Germanos

Environmental campaigners stressed the need for the incoming Biden White House to put in place permanent protections for Alaska's Bristol Bay after the Trump administration on Wednesday denied a permit for the proposed Pebble Mine that threatened "lasting harm to this phenomenally productive ecosystem" and death to the area's Indigenous culture.

Read More Show Less

OlgaMiltsova / iStock / Getty Images Plus

By Gwen Ranniger

In the midst of a pandemic, sales of cleaning products have skyrocketed, and many feel a need to clean more often. Knowing what to look for when purchasing cleaning supplies can help prevent unwanted and dangerous toxics from entering your home.

Read More Show Less