Esentia Energy to Boost Mexico Gas Pipeline Capacity 50% by 2030

Mexico’s Esentia Energy plans to expand natural gas pipeline capacity by 50% within five years, adding 660 million cubic feet per day to its Wahalajara network linking Texas to central Mexico, supported by funds from a recent $457 million IPO.

MEXICO CITY (Reuters) — Mexico’s Esentia Energy plans to expand its natural gas transportation capacity by 50% within five years, betting on rising demand as industrial use and U.S. imports increase, CEO Daniel Bustos said.

The company, which raised $457 million in a late-November IPO, will use part of the proceeds to fund the expansion and reduce debt. Esentia plans to add 660 million cubic feet per day of capacity by the third phase of its development plan.

Esentia operates more than 2,000 kilometers (1,243 miles) of pipelines in its Waha or Wahalajara System, which delivers low-cost gas from Waha, Texas, to industrial hubs in central and western Mexico, including Guadalajara.

Mexico currently relies heavily on natural gas imports from the United States. President Claudia Sheinbaum’s administration aims to reduce that dependence by boosting domestic output 40% to 5 billion cubic feet per day by 2030.

“There is a co-dependence,” Bustos said of the cross-border gas trade. “The United States needs to deliver natural gas to someone, because otherwise they cannot produce oil.”