LNG in the Northwestern Coast of Mexico: Impact on Prices of Natural Gas in Both Sides of the US-Mexico Border

Meritet, Sophie and Rosellon, Juan and Elizalde, Alberto (2006): LNG in the Northwestern Coast of Mexico: Impact on Prices of Natural Gas in Both Sides of the US-Mexico Border. Published in: Frontera Norte , Vol. 18, No. 36 : pp. 7-27.

Abstract

This paper studies the possible impacts of LNG projects on natural gas prices in both sides of the US-Mexico border in California. In California, gas prices are high and the demand is expected to grow. Several projects of 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 US Mexico border.

• Item Type: MPRA Paper
• Language: English
• Keywords: Liquefied Natural Gas (LNG), price formation, LNG projects, Mexico-US border, natural gas market
• Subjects: L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L95 - Gas Utilities ; Pipelines ; Water Utilities; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General

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