Mexico mulls expansion in shale gas production to support its petrochemicals sector

27-Apr-11

Mexico is considering an increase in shale gas production to support its petrochemicals sector as per Reuters. The prolific shales of Texas are believed to extend across the border into northern Mexico. State oil monopoly Pemex completed its first shale gas well in March, tapping into the Eagle Ford formation in Coahuila state near the Texas border. However the company has been slow to get into the gas business due to low returns compared with oil drilling, forcing Mexico to import gas from the United States and in the form of liquefied natural gas.