Fermaca’s crossborder Wahalajara pipeline system connecting the prolific Permian Basin to the city of Guadalajara and connections is driving energy demand in Mexico’s central-western region and turning the Waha hub in West Texas into a pricing point in Mexican natural gas transactions.

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That’s according to Santa Fe Gas LLC’s Santiago Garcia, who is CEO of the marketing affiliate of Fermaca. Santa Fe was the first marketer to gain rights to commercialize natural gas in Mexico after the country’s landmark 2013-2014 energy reform.

“We are seeing growing natural gas demand in Guadalajara and Bajío, which used to be areas with supply issues and critical alerts,” he said Thursday at Industry Exchange LLC’s 6th Mexico Infrastructure Projects Forum. “Right now, Houston...