Post by ENERGY SQUEEZE MONITOR

Waste gas from Pemex is set to fuel Ursus Energy's LNG ambitions on the Gulf of Mexico, marking a strategic move to convert vented and flared natural gas into valuable liquefied natural gas. This initiative not only addresses Pemex's surging methane emissions—up over 50% in Q1—but also aligns with its goal to cut emissions by 30% by 2030 from 2020 levels. Ursus Energy's project, backed by a $1.2 billion capital raise with 70% committed, will process about 200 million cubic feet per day of Pemex's waste gas. The LNG output, slated for early 2029, targets markets in Europe, the Caribbean, Central America, and Mexico, supported by infrastructure investments including desulfurization and nitrogen rejection units. This development underscores the tightening supply dynamics in global oil and gas markets, where declining reserves and the need for sustainable feedstock are reshaping project economics. It echoes the strategic importance of recent major discoveries that continue to influence supply-side asymmetry and market positioning. Moreover, the project reflects a broader trend of leveraging stranded or wasted hydrocarbons to mitigate environmental impact while unlocking new value streams—an approach gaining traction amid evolving regulatory and market pressures, as seen in recent updates from key players like ReconAfrica. Positioning in this space is increasingly crowded, with liquidity constraints and flow dynamics likely to amplify volatility as these projects progress toward commercialization. Monitoring borrow rates and options positioning around such midstream and LNG ventures will be critical to anticipating potential squeeze scenarios in energy markets. Read More: https://lnkd.in/ed4rpCjf #LNG #MethaneEmissions #EnergyTransition Disclosure: The owner of this account and affiliated entities hold a financial interest in one or more companies referenced in this post. For informational purposes only; not investment advice.