Investing.com: Mexico plans to become LNG exporter by building new terminals

Latin America plays a critical role in global electrification, as it produces nearly 40% of the world’s lithium supply needed for battery production. However, the region lags far behind in liquefied natural gas (LNG) output, Investing.com notes.

However, Mexico plans to become the region’s LNG powerhouse due to the intentions of the country's authorities to build up to five major export terminals on Mexico’s Pacific Coast, according to a Gas Outlook report.

The company's analysts believe that most of the gas needed to supply these plants would be extracted from America’s Permian Basin in Texas and New Mexico rather than from Mexico. This will allow the plants of the South American country to significantly reduce production costs.

In addition, LNG exports from Mexico’s Pacific Coast to Asia would be 11 days faster compared to the US Gulf Coast, Gas Outlook emphasizes.

However, Mexico and other Latin American countries are likely to remain gas importers in the near future due to such challenges as declining production from mature fields, Investing.com says.