LNG in the Northwestern Coast of Mexico. Impact on Natural Gas on Both Sides of the U. S.-Mexico Border

This paper studies the possible impacts of liquefied natural gas (LNG) projects on natural gas prices on both sides of the U. S.-Mexico border in California. In that state gas prices are high and demand is expected to grow. Several projects for LNG facilities have been proposed and have to cope with public opinions against them. In Baja California, four LNG projects are under development given the rising demand forecasted for the next years. After a detailed study of the opportunity for LNG projects, we conclude with an analysis of the fundamentals of the current and future price formation in both sides of the U. S.-Mexico border.