Mexico investing billions to tap into Eagle Ford Shale

August 23, 2012

The Mexican government is planning to invest $8 billion to expand its natural gas pipeline system to accept shipments from the Eagle Ford Shale play in South Texas, reported.

Mexico already purchases large quantities of natural gas from the United States. The U.S. Energy Department data shows that natural gas exports from the United States to Mexico totaled 500 billion cubic feet in 2010, according to the report.

If the Mexican government builds out its pipeline infrastructure, such a move could open up new opportunities for South Texas producers to sell gas to Mexico. The Eagle Ford Shale is a geologic formation that spans 24 counties south of San Antonio.

Link to SABJ