President Trump has given the thumb’s up for more oil export infrastructure along the U.S.-Mexico border with the recent signoffs on two new permits. San Antonio-based NuStar Energy looks to construct additional crude oil pipelines under the Rio Grande to boost exports from West Texas to Mexico. The company last year doubled the capacity on its Valley Pipeline System to transport 90,000 BPD of refined products from Corpus Christi to the Rio Grande Valley and northern Mexico. The second permit has been granted to Kansas City Southern Railway to build a railway bridge in Laredo. Mexico ranks as the nation’s largest importer of U.S. crude oil purchasing last year 1.2 billion BPD of oil and refined products, especially gasoline.
NuStar Energy L.P., is a publicly traded master limited partnership. The company is one of the largest independent liquids terminal and pipeline operators in the nation.
The country’s immense consumption of natural gas also makes Mexico our biggest energy customer with volumes rising every month and lifting more than a few eyebrows along the way. The U.S. pipelined an average 6.4 BCFD of gas to Mexico from July 20-24 in what’s been described as the strongest five-day period ever seen in the market. This, primarily due to completion in June of the Waha-to-Guadalajara system via the new 232-mile Villa de Reyes-Aguascaliente-Guadalajara (VAG) pipeline, which now connects more Permian gas to central-western Mexico. According to Rystad Energy, U.S. natural gas exports to our friends South of the border could well climb to more than 1.5 BCFD during the year’s second half.
Other pipelines extending from West Texas to the Gulf with connections to Mexico are slated for commercial service as early as next year, including the 450-mile Whistler and 41-mile Permian Highway. Each will flow 2 BCFD of gas.
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