Natural gas and LPG: how US gas reaches Mexico's power plants and homes

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Mexico Trade Corridor · Product brief · HS 2711

Most of the natural gas burned in Mexico's power plants comes from the United States by pipeline. This brief sets out the numbers from both sides, how far Mexico depends on US gas, the rules in force and where buyers need working capital.

Published October 23, 2026 · Facts as of October 23, 2026 · 10 min read · Trade data: UN Comtrade, 2020 to 2025 · Rules as of October 23, 2026

Facts as of October 23, 2026. This page states the facts as they stood on that date. Tariffs, rules and figures may have changed since publication. Tariffs and trade policy change often, so we review these pages every month and update them.

#3

Mexico's No. 3 import from the US in 2025, ranked by value as reported by Mexico (UN Comtrade, 4-digit HS codes). The US figure is shown beside it because the two countries count the same trade differently.

US$10.8bnMexico's imports from the US, 2025, as reported by Mexico

US$9.4bnThe same flow, 2025, as reported by the US

+66.1%Change 2020 to 2025, Mexico data

US$0.0bnMexico's exports to the US in the same code, 2025, Mexico data

What is it?

HS 2711 covers natural gas and liquefied petroleum gases (LPG), such as propane and butane. Mexico reported US$10.8 billion of these imports from the US in 2025. US data shows US$9.4 billion ¹.

Why does it matter?

Natural gas and LPG are Mexico's third-largest import from the US ¹. About 60% of Mexico's electricity depends on natural gas, and imports meet nearly 75% of gas needs, according to the energy minister in May 2026. A later report puts imports at up to 70% ^3,4.

How does it work?

Gas from Texas and other US states flows south through cross-border pipelines to power plants and industry. LPG arrives by ship, rail and truck. Importers need a permit from Mexico's energy ministry, SENER ^2,5,9.

In this brief

1. How big is the natural gas and LPG trade?
2. Which gases cross the border?
3. How much does Mexico depend on US gas?
4. How does the gas get from the US to Mexico?
5. Which rules apply?
6. Where do gas and LPG buyers need cash, and how is it financed?
7. What should gas traders watch next?

01How big is the natural gas and LPG trade?

Mexico reported US$10.8 billion of natural gas and LPG imports from the US in 2025. US data shows US$9.4 billion of exports to Mexico ¹. The trade was 4.3% of Mexico's US$249.9 billion of reported imports from the US ¹.

The value is up 40.6% from US$7.7 billion in 2024, and up 66.1% from 2020, as reported by Mexico ¹. It peaked at US$17.3 billion in 2022, then fell 46.4% to US$9.3 billion in 2023 ¹.

Volumes kept rising while the value fell. The US Energy Information Administration (EIA) reports that pipeline exports to Mexico averaged 6.4 billion cubic feet a day (Bcf/d) in 2024, the highest in data going back to 1975. May 2025 set a monthly record of 7.5 Bcf/d ². This points to lower gas prices as the main cause of the fall in value from 2022 to 2024.

In this code Mexico's figure is US$1.3 billion higher than the US figure for 2025 ¹. Our data gap explainer sets out why the two sides differ. Little gas flows north: US data shows US$0.2 billion of imports from Mexico in 2025, almost all liquefied natural gas (LNG) ¹.

Chart

Natural gas and LPG trade, both directions, both sides of the data

• Mexico to US, Mexico data
• Mexico to US, US data
• US to Mexico, Mexico data
• US to Mexico, US data

US$ billion. Solid lines: as reported by Mexico. Dashed lines: as reported by the US. Source: UN Comtrade, 2020 to 2025.

02Which gases cross the border?

Pipeline natural gas leads. It was US$7.5 billion in 2025, or 69.4% of Mexico's HS 2711 imports from the US ¹. Propane, the main LPG product, was US$2.7 billion, or 24.7% ¹. Other liquefied gases were less than 1% ¹.

In Mexico's data the 6-digit lines add up to US$10.2 billion, or 94.6% of the 4-digit total of US$10.8 billion. The source data does not explain the gap, so this brief quotes the 4-digit total as the headline and shows each line as a share of it ¹. US data has the same order: natural gas at US$6.5 billion and propane at US$2.5 billion ¹.

Chart

The gas lines Mexico imports from the US

US$ billion and share of the 4-digit total, 2025, as reported by Mexico. Source: UN Comtrade. In Mexico's data the 6-digit lines add up to US$10.2 billion, less than the 4-digit total of US$10.8 billion, so shares are of the 4-digit total.

03How much does Mexico depend on US gas?

Mexico's energy minister said in May 2026 that the country uses about 9 Bcf/d of natural gas, and that Pemex produces 2.3 Bcf/d. The same report says imports meet nearly 75% of Mexico's gas needs ³. A report in October 2026 puts imports at up to 70% of demand ⁴. The two sources differ and neither gives a method, so we show both.

Demand is rising. EIA data shows Mexico's gas consumption grew from 7.7 Bcf/d in 2019 to 8.6 Bcf/d in 2024, mostly for power ². Thirteen new power plants for the state utility, CFE, are expected by 2030, and the government projects a 30% rise in gas demand by then ³. Pemex's chief executive estimates that its output could pass 4 Bcf/d by 2030 ³.

Mexico has limited gas storage, which makes supply interruptions hard to absorb ². LPG is sold to households at capped prices. The energy regulator, CNE, publishes maximum LPG prices each week. For September 13 to 19, 2026, the cap in Mexico City was MXN 19.84 per kilogram ⁸.

04How does the gas get from the US to Mexico?

Pipeline gas enters through four corridors: South Texas, West Texas, Arizona and California. Together they have about 14.8 Bcf/d of capacity, and about 43% of it was used in 2024 ². West and South Texas carried 91% of 2024 pipeline exports. West Texas flows rose from 0.6 Bcf/d in 2019 to 1.8 Bcf/d in 2024 ².

Inside Mexico, new lines extend the network. The Southeast Gateway offshore pipeline, completed in 2025, supplies new power plants on the Yucatán Peninsula. Construction of Centauro del Norte, for power plants in the northwest, began in 2025 ². In May 2026 the government announced MXN 140 billion for gas infrastructure, funded through CFE and the state pipeline operator, Cenagas ³.

LPG moves by ship, rail and truck, and in small volumes by pipeline ⁹. Our guide to border crossings covers the rail lines and ports.

1. US gas fieldProducers, mainly in Texas, sell gas into the US pipeline network.
2. Cross-border pipelineGas crosses at one of four corridors. West and South Texas carry most of it.
3. Permit and customsThe importer holds a SENER import permit and declares the gas under HS 2711.
4. Mexican networkCenagas and private pipelines carry the gas south and east.
5. Power plant or factoryCFE power plants and industry burn the gas. The invoice is paid on the contract terms.

US pipeline gas exports to Mexico averaged 6.4 Bcf/d in 2024, the highest in EIA data going back to 1975.

05Which rules apply?

Importing natural gas into Mexico needs a SENER import permit ⁵. The Hydrocarbons Sector Law was published in Mexico's official gazette (DOF) on March 18, 2025, and its regulation took effect on October 4, 2025 ^6,7. Cross-border pipelines also need a US Presidential Permit ⁹.

Energy purchases are part of the wider US-Mexico trade talks. In October 2026 Mexico's president said buying more US gas could be an option in the talks, and also said the government wants to depend less on gas over time ⁴. USMCA stays in force. On July 1, 2026 the US did not agree to renew it in its current form, so annual joint reviews now follow ¹⁰. All rules here are as of October 23, 2026. The live list is on our corridor watch page, and our guide to landed cost covers import VAT and fees.

Rules in force

As of October 23, 2026. Live list: corridor watch.

Measure	What it does	Since	Status
SENER import permit	Required to import natural gas under the Hydrocarbons Sector Law, published in the DOF 5,6	Mar 18, 2025	In force
Hydrocarbons Sector Law regulation	Sets out permits and reporting under the law 7	Oct 4, 2025	In force
US Presidential Permit	Required for pipelines that cross the US-Mexico border 9	Standing rule	In force
LPG maximum prices	CNE publishes weekly caps by city. Mexico City, Sep 13 to 19, 2026: MXN 19.84 per kilogram. Confirm the legal basis 8	Weekly	Changes weekly
US-Mexico energy purchase talks	Buying more US gas named as a possible option in trade talks 4	Oct 13, 2026	Under negotiation
USMCA joint review	Agreement in force; annual joint reviews after the US did not renew it in its current form 10	Jul 1, 2026	In force

06Where do gas and LPG buyers need cash, and how is it financed?

As general practice, pipeline gas is sold under monthly contracts between large companies, on open account terms. The finance question is the buyer's credit and how fast it pays. CFE's payment terms are not public in the sources we checked.

LPG distributors buy by the ship cargo or the rail car and sell to households at capped prices ⁸. As general practice, their margins are thin, so they need working capital to carry stock between purchase and sale. Ship cargoes between unrelated parties are commonly paid by letter of credit, and stock in storage can secure inventory finance. See financing energy trade.

Our guide to financing fuel imports covers permits, documents and payment practice for liquid fuels. Refined fuels have their own brief: refined fuels.

Where the cash goes

From gas purchase to customer payment

1. Contract
   Supply and capacityThe buyer agrees volumes with a US seller and books pipeline capacity.
2. Delivery
   Gas flows each dayGas is delivered daily. As general practice, it is invoiced monthly.
3. Customs
   Import taxesAs general practice, import VAT and fees are paid at entry. See our landed cost guide.
4. Storage
   LPG stockLPG distributors hold stock in tanks before sale. Gas storage in Mexico is limited ².
5. Payment
   Cash returnsPower plants, factories and households pay. LPG is sold at weekly capped prices ⁸.

The order of cash needs is typical for a gas or LPG importer. Actual days depend on each contract.

LPG ship cargoLetters of credit

A bank pays the US seller when the shipping documents comply.

Monthly gas invoicesOpen account trade

The buyer pays after delivery, within agreed credit limits.

LPG in storageInventory finance

A lender funds stock held in tanks, with the gas as security.

Buyer may not payTrade credit insurance

Covers most of an unpaid invoice if a covered buyer fails to pay.

07What should gas traders watch next?

Two things will shape this trade: the US-Mexico talks on energy purchases, and how fast Mexico builds pipelines and raises its own output ^3,4. USMCA would end on July 1, 2036 unless the three countries confirm an extension ¹⁰.

• WeeklyCNE publishes maximum LPG prices by city ⁸.
• Late 2026US-Mexico talks that include energy purchases continue through the last part of 2026, as of October 13, 2026 ⁴.
• By 2030Thirteen new CFE power plants expected, and a projected 30% rise in gas demand ³.
• By 2030Pemex estimates its gas output could pass 4 Bcf/d ³.
• Jul 1, 2036USMCA ends on this date unless the three countries confirm an extension. Annual reviews run until then ¹⁰.

Questions traders ask

How much natural gas and LPG does Mexico import from the US?

Mexico reported US$10.8 billion of HS 2711 imports from the US in 2025. US data shows US$9.4 billion of exports to Mexico. Pipeline natural gas was about 69% of Mexico's figure and propane about 25%.

How much of Mexico's gas comes from imports?

Mexico's energy minister said in May 2026 that imports meet nearly 75% of the country's gas needs. A report in October 2026 put the share at up to 70%. Neither source gives a method.

How does US gas reach Mexico?

Through cross-border pipelines in four corridors: South Texas, West Texas, Arizona and California. West and South Texas carried 91% of pipeline exports in 2024. LPG also moves by ship, rail and truck.

Why did the value of the trade fall after 2022 when volumes rose?

Gas prices fell. The value fell from US$17.3 billion in 2022 to US$7.7 billion in 2024, as reported by Mexico, while pipeline exports reached a record annual average of 6.4 Bcf/d in 2024. The value rose again in 2025.

Are LPG prices regulated in Mexico?

Yes. The energy regulator, CNE, publishes maximum LPG prices by city each week. For September 13 to 19, 2026, the cap in Mexico City was MXN 19.84 per kilogram.

Read next

• Corridor hubThe Mexico to US corridor: what moves and how it is paid for
• Corridor hubCorridor watch: tariffs and rules in force
• Corridor guideFinancing fuel imports
• Corridor guideLanded cost: import VAT, duties and fees
• Corridor hubHow goods cross: border crossings, rail lines and ports
• Product briefRefined fuels: Mexico's largest import from the US, and why it is falling
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Trading natural gas or LPG between Mexico and the US? Ossiano Capital works on trade finance in this corridor.

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Sources and notes

1. UN Comtrade, annual trade data 2020 to 2025, HS 2711, Mexico and the US as reporters. Downloaded October 2026; 2025 figures may be revised. https://comtradeplus.un.org/
2. US Energy Information Administration, Today in Energy, US natural gas exports to Mexico reach new records, October 20, 2025. https://www.eia.gov/todayinEnergy/detail.php?id=66404
3. Mexico News Daily, Mexico to invest US $8B to expand natural gas pipeline network, May 8, 2026. https://mexiconewsdaily.com/news/natural-gas-pipelines-mexico-investment-2026/
4. La Crónica de Hoy, Sheinbaum considera aumentar importaciones de gas en medio de diálogo con Trump, October 13, 2026. https://www.cronica.com.mx/nacional/2026/10/13/sheinbaum-considera-aumentar-importaciones-de-gas-en-medio-de-dialogo-con-trump/
5. Greenberg Traurig, Reformas al sector de hidrocarburos, parte I, February 2025. https://www.gtlaw.com/ar/insights/2025/2/reformas-al-sector-de-hidrocarburos-parte-i
6. Cámara de Diputados, Ley del Sector Hidrocarburos, reform history (DOF March 18, 2025), accessed October 23, 2026. https://www.diputados.gob.mx/LeyesBiblio/ref/lsh.htm
7. Pérez-Llorca, Entrada en vigor del Reglamento de la Ley del Sector Hidrocarburos, October 2025. https://www.perezllorca.com/wp-content/uploads/2025/10/Nota-Juridica-Entrada-en-vigor-del-Reglamento-de-la-Ley-del-Sector-Hidrocarburos.pdf
8. UnoTV, Precio del gas LP del 13 al 19 de septiembre de 2026 (CNE list), September 2026. https://www.unotv.com/negocios/precio-del-gas-lp-esto-te-costara-del-13-al-19-de-septiembre-de-2026/
9. RBN Energy, Enciende Mi Fuego: LPG pipelines to and through Mexico, September 29, 2015 (background). https://rbnenergy.com/enciende-mi-fuego-light-my-fire-lpg-pipelines-to-and-through-mexico
10. White & Case, USMCA 2026 joint review: United States declines to extend agreement, July 2, 2026. https://www.whitecase.com/insight-alert/usmca-2026-joint-review-united-states-declines-extend-agreement-triggering-annual

Trade values are US dollars from UN Comtrade at the 4-digit HS level unless a 6-digit line is named. Mexico and the US record the same shipments under different rules for value, country of origin and timing, so their figures differ. Percent changes compare 2025 with 2020. All facts on this page are as of October 23, 2026, the date of publication, and may have changed since. Rules and tariffs are as of October 23, 2026 and change often: check the corridor watch before you act.

About this brief. Prepared for Ossiano Capital. People planned, researched, wrote and checked this brief, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.