"The bottleneck in Latin America’s second-largest economy is the latest energy whiplash stemming from the U.S. shale gas boom. Mexican gas prices are tied to rates in its northern neighbor, where soaring supplies from shale fields drove gas to a 10-year low and reduced Mexico’s wholesale price 32 percent in the past year. Manufacturers can’t get enough of the energy.
“The shortage of natural gas is affecting companies economically and technically,” Octavio Rangel, the Mexico Steel Chamber chief, said without naming any, in a written response to questions. “In some plants, gas supply has been reduced 40 percent to 45 percent of what was originally agreed.”...
...“The problem is about pricing, not about reserves, not even about pipelines,” David Shields, a Mexico City-based independent energy analyst and publisher of Energia magazine, said in an Aug. 22 interview. “Companies want the same prices here than those in the U.S. when the supply reality is different in Mexico.”"
Another unforeseeable result from NAFTA. That deals keeps getting worse for almost everybody. - Wes
