North America
The Energy Picture

prepared by

North American Energy Working Group

June 2002

(5) North America — Infrastructure: Natural Gas

Natural Gas Infrastructure in North America

Natural gas use in North America is growing rapidly. Between 1999 and 2000, Canadian natural gas exports to the United States grew by about 200 billion cubic feet (Bcf). U.S. exports to Canada grew by over 30 Bcf. Between 1999 and 2000, Mexican natural gas imports from the United States increased by about 40 Bcf. Mexican gas exports to the United States dropped by slightly above 40 Bcf.

The growing role of natural gas has been accompanied by restructuring and regulatory changes that have impacts on infrastructure development. Section 6 describes the legal and regulatory frameworks for Canada, Mexico, and the United States.

Key forms of natural gas infrastructure include production, liquefaction or regasification for liquefied natural gas (LNG), storage, and transport (pipelines and tankers). Because of the emerging role of natural gas in many markets, North America’s natural gas infrastructure has grown considerably and will continue to grow. Pipelines carry natural gas in both directions between Canada and the United States and between Mexico and the United States. At present most trade of natural gas is from Canada to the United States and from Cook Inlet (Alaska) to Asia. Small quantities of LNG are trucked to Mexico.

At present gas pipeline infrastructure is more developed between Canada and the United States than between Mexico and the United States. Canada’s gas flows to the United States through several major pipelines feeding U.S. markets in the Midwest, Northeast, the Pacific Northwest and California. Some key examples are the Alliance Pipeline, the Northern Border Pipeline, the Maritimes & Northeast Pipeline, the TransCanada Pipeline System and Westcoast Energy pipelines.

In recent years, the Mexico-United States natural gas pipeline connections have expanded. In 1997 the United States started exporting natural gas through the Texas-to-Monterrey pipeline. In addition, the El Paso Energy connection to Pemex pipelines also contributes to Mexican supplies. Pemex has eight connection stations for exports or imports along the border with the United States. There are other privately-owned cross border connections in northwest Mexico.

Natural gas infrastructure in the United States has grown significantly through development of natural gas pipelines and storage capabilities for huge national operating centers or “hubs.” The Henry Hub in Louisiana has expanded its connections into many “gas market centers” in Canada and the United States and various “trading points” that increasingly make use of auction prices rather than long-term contracts.

The expansion of natural gas in North America’s economies will continue to place great importance into investment and development of the infrastructure.

Natural Gas — Canada

Natural Gas — Remaining Established Reserves, Year-end 2000
(Trillion Cubic Feet)
Natural Gas — Remaining Established Reserves, Year-end 2000 (Trillion Cubic Feet)
  • Alberta is the dominant producer.
  • Nova Scotia is increasing its production.
  • There is a high level of interest in northern development.

Main Canadian Natural Gas Pipelines
Main Canadian Natural Gas Pipelines
  • Canada has an extensive natural gas pipeline network, including several major interconnections with the United States.
  • Canada is the world’s second largest natural gas exporter after Russia.

Natural Gas — Mexico

Mexico’s national pipeline system (with lines of 24, 36 and 48 inches in diameter) crosses 18 states of the Mexican Republic, from Cactus in the south to Los Ramones in the northeast.

  • Naco, Sonora, is the point of origin of a 339-kilometer natural gas import pipeline, which runs from the United States to Hermosillo, Mexico.

  • Mexico’s national pipeline system extends for 7,516 kilometers, with 8 compression stations — 3 in the south in Cardenas and Minatitlán, and one in Valtierrilla, Guanajuato and another 4 in the north of Tamaulipas and Nuevo León.

Pemex has eight connection stations where natural gas can be exported or imported along the border with the United States. These include Naco, Sonora; Piedras Negras, Coahuila; two in Reynosa; two in Argüelles, Tamaulipas; Ciudad Juárez and Samalayuca, Chihuahua.

  • Argüelles: The Coral Energy project at Argüelles, inaugurated on October 22, 2000, is the most recent pipeline to cross the U.S.-Mexican border. The 24-inch Coral pipeline has a capacity of 300 million cubic feet per day (MMcf/d) and a length of 95 miles. The new Coral line will serve the same territory as 400 MMcf/d of capacity on Pacific Gas & Electric pipelines which is also connected to the Pemex interconnection at Argüelles, Tamaulipas.

  • Reynosa has a combined capacity of 485 MMcf/d: Tetco 250 MMcf/d and Tennessee 235 MMcf/d. The pipeline diameter is 24-inch and runs for 7.5 miles.

  • Ciudad Juárez has 80 MMcf/d capacity, with a pipeline diameter of 16 inches and total length of 2 miles.

  • The Samalayuca pipeline is 40 miles long, with a tube of 24 inches in diameter and a capacity of 272 MMcf/d.

  • The Naco pipeline has a capacity of 90 MMcf/d, is two miles long, and has a 16-inch diameter.

  • The Piedras Negras has a capacity of 38 MMcf/d.

  • Mexicali: Another cross-border connection is in northwest Mexico, servicing the Rosarito power plant, industrial facilities and the cities of Tijuana and Mexicali in northern Baja California. It is 36 kilometers long, with a 30-inch diameter and a capacity of 269 MMcf/d. This pipeline is operated by the private sector.

Natural Gas Pipeline Interconnections
Between Mexico and the United States		  
Natural Gas Transport System
Natural Gas Pipeline Interconnections Between Mexico and the United States Natural Gas Transport System

Natural Gas — United States

  • A large portion of natural gas pipeline capacity within the United States is directed from major production areas (1) of Texas and Louisiana to markets in the Western (2), Northeastern (3), and Midwestern (4) regions of the country. In the past ten years increasing levels of gas from Canada (5) have targeted these markets as well.

  • The U.S. has several major natural gas production basins, and an extensive natural gas pipeline network.

  • There are numerous pipeline connections between the United States and Canada; almost 95 percent of U.S. natural gas imports come from Canada.

  • Major connections join Texas and northeastern Mexico, with additional connections to Arizona and between Baja California, Mexico, and California, U.S. Infrastructure growth in the Baja California region is expected.

Natural Gas Pipeline Capacity Serving the U.S. Marketplace
Natural Gas Pipeline Capacity Serving the U.S. Marketplace

Natural Gas Imports and Exports, 2000
(Billion Cubic Feet)
Natural Gas Imports and Exports, 2000 (Billion Cubic Feet)
  • U.S. gas imports from Canada have grown every year since 1986.
  • Most of the growth in the U.S. imports from Canada in 2000 resulted from the initiation of the
    Maritimes & Northeast Pipeline and the Alliance Pipeline. The Portland Pipeline also contributed.
  • U.S. exports to Mexico increased in 2000, while imports from Mexico decreased.

Proceed to (5) North America — Infrastructure: Coal and Electricity

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