Questions remain in Texas regarding executive authority to regulate natural gas exports only weeks ahead of the winter season, according to comments by a member of state oil and gas regulator the Texas Railroad Commission (RRC).
RRC commissioner Jim Wright, who was sworn into office a month before a major winter storm in February froze Texas gas infrastructure and knocked out power, discussed the regulatory reaction following the incident during a talk today at the LDC US-Mexico Natural Gas Forum in San Antonio, Texas.
The RRC received instructions from Texas governor Greg Abbott's office following the power outages. Abbott signed an executive order on 17 February mandating that all sources of gas in Texas be temporarily prioritized for domestic use, such as heating for residential homes, over exports.
"We had to put a directive out telling pipelines to make sure the gas was directed in that area," Wright said. "I wasn't real sure that we could tell pipelines they couldn't honor those contracts they had. And I still today don't think we have the authority to do that."
The order — which lasted five days — raised several ongoing legal questions and threatened to completely shut in pipelines exporting to Mexico. The result would have crippled the country's power generation and industrial activity.
During the storm, Mexico lost about 20pc of its then-average of 5 Bcf/d (142mn m³/d) in gas supplies from Texas. The reduction in flows led to power outages in 29 Mexican states. The country's president, Andres Manuel Lopez Obrador, entered discussions with Texas a day after the order in an attempt to have it overturned.
"It was critical for us to continue our exports of gas into Mexico," Wright said.
One major help to ensure gas exports to Mexico remain stable in the upcoming winter season, Wright suggested, would be to ensure adequate electricity supplies for Texas' gas production and transportation infrastructure.
The Texas Public Utility Commission (PUC) proposed several weatherization requirements for the state's power infrastructure in August, though concerns remain as to whether enough will be done by December.
The LDC US-Mexico Natural Gas Forum continues through tomorrow.
