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US Natural Gas Pipeline Exports Continue to Grow: Key Highlights

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US natural gas pipeline exports

US natural gas (UNG) pipeline exports have increased during the past few months, driven by higher pipeline exports to Mexico (EWW). This was slightly offset by lower exports to Canada (EWC). Kinder Morgan (KMI) and Energy Transfer Partners (ETP) are among the midstream companies that already have a pipeline network to Mexico.

Average US natural gas pipeline exports totaled ~185 Bcf (billion cubic feet) by the end of September 2016. This is 33.0% higher than the last five-year average of ~139 Bcf. Natural gas pipeline exports to Mexico totaled 123 Bcf, which is 79.0% higher than the five-year average. Canada saw a 39% decline in natural gas imports from the US (or exports from the US to Canada).

The decline in US natural gas exports to Canada was mainly due to lower demand growth and supply abundance on both sides of the border. The higher exports to Mexico were mainly driven by higher usage of natural gas as burning fuel by Mexican utilities.

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