Mercuria forms JV with Pemex to import US gas

Map from Pemex

Mex Gas Supply (MGS), a subsidiary of Mexico's Petroleos Mexicanos (Pemex) has a formed an alliance with Switzerland’s Mercuria, financed by JPMorgan.to import US-sourced natural gas.

On 8 August, Geneva-based Mercuria Energy Trading SA announced that it signed a memorandum of understanding with Pemex-MGS to form a joint venture which will import US natural gas into Mexico via pipeline.

The joint venture will begin operations in 4Q 2014, about the same time as the 1200km Los Ramones pipeline opens to bring natural gas from South Texas to Mexico.

Regarding this opportunity to work together with Mexico in the energy reform process, Mercuria said it believes that the new partnership will help to ensure the long term reliable supply of natural gas to Mexico at competitive prices.

Mercuria announced in March it would purchase the physical commodities business from JPMorgan Chase & Co. for US$3.5 billion. This will expand Mercuria’s operations in North America and Europe. Following the acquisition, Mercuria said it would be well placed, with its people and assets, to contribute to develop an integrated gas market between North America and Mexico.

Mercuria has upstream oil and gas assets in the US (North Dakota Bakken); Canada (Saskatchewan, Alberta); Argentina (Tierra del Fuego, Mendoza, Santa Cruz); Equatorial Guinea, Nigeria, and Romania.

Related OE news:

Mitsui eyes Mexico, 8 July 2014

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