Mexico Explores Fracking to Cut U.S. Gas Dependency Amid Trade Strains

Mexico is consulting with private companies to increase fracking efforts, aiming to lessen its dependence on U.S. natural gas amid rising trade tensions. Currently, U.S. imports fulfill 72% of Mexico's gas demand. Despite initial discussions, any fracking policy shifts are expected to take months to formalize.

Mexico is in talks with private sector firms to boost fracking as part of an effort to reduce reliance on U.S. natural gas, according to a report by the Financial Times. This initiative arises amid escalating trade tensions with the U.S., which currently provides 72% of Mexico's gas imports.

The discussions remain in preliminary stages but indicate interest from companies willing to invest in Mexico's energy sector. These talks could lead to strategic policy shifts, although any significant changes might take months to develop fully.

RBN Energy highlights the tripling of U.S. gas imports to Mexico over the last decade, primarily from the Permian and Eagle Ford Basins. Mexico's own production downturn, coupled with the unsuitability of its gas reserves due to high nitrogen content, makes increasing storage and exploring fracking crucial steps for energy independence.

(With inputs from agencies.)