Kinder Morgan Restores U.S.-Mexico Gas Flows After Pipeline Outage

Kinder Morgan has resumed natural gas deliveries on the Tennessee Gas Pipeline to Mexico, following repairs that restored service interrupted earlier this week. The company identified issues on October 5 and isolated segments of the system, including the Rio Bravo and Cenagas meters. Force majeure was declared the next day. Kinder Morgan reported that the problems were resolved on Thursday, and shipments are back in operation.

The outage, though brief, is significant for Mexico, which relies heavily on U.S. pipeline gas. Approximately 75% of Mexico's natural gas originates from Texas, making it the country's largest import source. Mexican pipeline operator CENAGAS had anticipated a potential 20% reduction in flows during the outage. Director Cuitlahuac Garcia described the situation as critical, noting that Mexico has only about three days of gas reserves.

The country lacks substantial underground storage, making its power sector highly dependent on uninterrupted pipeline deliveries from the north. This dependence has intensified as Mexico increases its use of natural gas for electricity generation and industrial purposes. President Claudia Sheinbaum's administration is exploring limited hydraulic fracturing to boost domestic gas production, and the nation plans to invest around $8 billion in pipeline infrastructure.

However, these measures do not address the immediate storage challenge. The recent Tennessee Gas outage, though short-lived, highlighted the delicate balance behind Mexico's gas system, with 8 Bcf/d arriving from the United States, three days of reserve supply, and a grid that cannot tolerate frequent interruptions.