Kinder Morgan Restores U.S.-Mexico Gas Flows After Pipeline Outage
Kinder Morgan Restores U.S.-Mexico Gas Flows After Pipeline Outage Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector.
Her… Kinder Morgan has lifted force majeure on its Tennessee Gas Pipeline after repairs restored natural gas deliveries to Mexico that had been interrupted earlier this week.
Tennessee Gas identified problems on October 5 and isolated sections of the system, including the Rio Bravo and Cenagas delivery meters.
The company declared force majeure the following day.
Kinder Morgan said Thursday that the problems had been resolved and shipments were being restored.
The outage was brief, but Mexico doesn’t have much room for even a brief one.
About 75% of the country’s natural gas comes from Texas, making Mexico the largest buyer of U.S.
American exports south of the border have climbed from roughly 1 billion cubic feet per day in 2010 to around 8 Bcf/d today.
Mexican pipeline operator CENAGAS had been warned that flows could fall by as much as 20% during the outage.
Director Cuitlahuac Garcia described the situation as critical.
Mexico has roughly three days of gas reserves, according to Garcia.
The country does not have large-scale underground storage comparable to the United States, leaving its power sector heavily dependent on continuous pipeline deliveries from the north.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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