Russia Offers to Supply LNG and Technology to Mexico: A Proposed Option to Leverage Against Trump Tarrifs?

     Russia’s offer to supply Mexico with LNG and LNG technology is a bad idea on several levels. According to a report by Russian Energy Minister Sergey Tsivilyov published by the Russian state news agency TASS, Russia is ready to supply Mexico with LNG along with technology to extract and refine in difficult geological conditions. He said they are prepared to manage the whole production chain from extraction to refining and transportation. His remarks were made at the St. Petersburg International Economic Forum. According to Daily Digest:

“The Xataka portal explains that 72% of Mexico's natural gas supply comes from the United States, according to an analysis by Fitch Ratings, something which is of concern to Mexico as it fears US President Donald Trump could take advantage of this energy dependence.”

     Thus, Mexico is dependent on the U.S. for natural gas, which comes from pipelines at a very low price, which benefits Mexican power and industries. It is difficult to see how Russian LNG, no matter how discounted, could compete. Mexico has not commented on the offer.

“However, according to Xataka, Pemex is going through a difficult time, trying to reopen some of its 30,000 wells, about a third of which are closed. However, it goals are being thwarted by a lack of funds and delapidated infrastructure.”

Pemex has long been a poorly run nationalized company. A majority of the world’s best geologists and engineers are nearby in Texas and could no doubt offer better rejuvenation for Mexican oil production.

“According to Infobae, Mexican President Claudia Sheinbaum stated that new energy projects will be created, including power plants and gas pipelines. According to Reuters, Mexico indicated back in January that it was speeding up plans to double its strategic gas storage to avoid being trapped by Trump.”

     Mexico does not need Russian LNG, but they do need assurances from the Trump administration that oil and gas deliveries won’t be disrupted by trade dispute issues. The selling of Texas oil and gas to Mexico benefits both countries immensely. It is a win-win that should not be altered significantly. Mexico should also soundly reject the idea of supporting sanctions on Russian oil & gas due to their brutal invasion of Ukraine. Mexico has been too friendly to Russia, in my opinion.

Pemex noted that it is working to reopen oil wells that were shut in to boost production as it struggles to reach the government's target of 1.8 million barrels per day. I do not think Mexico’s energy concerns about supply disruptions are warranted, but I do understand the concerns around Trump’s chaotic and hardball trade policies. Mexico rightly wants to increase its energy security and rejuvenate its mismanaged oil fields. U.S. oilfield technology would be better, cheaper, and much more sensible than Russia. U.S. companies are already working together with Pemex in offshore plays. According to an article in Skillings Mining Review:

“Mexico, already navigating U.S. scrutiny of its energy policies under the USMCA, sees diversification as a necessary risk.”

“Mexico isn’t pivoting away from the U.S.—it’s creating options,” said Leo Timmons, an LNG advisor in Houston. “Energy trade has become a proxy for broader geopolitical shifts.”

     Mexico is also cooperating more with Russia, importing more agricultural goods and industrial equipment. Russia’s economy is singularly focused on conquering more Ukrainian territory, which gives it even more goods to sell from the stolen resources. Thus, buying Russian goods is an indication of support for their brutal war machine, which includes North Korean soldiers and Iranian weapons technology. The U.S. government obviously does not want more Mexico-Russia cooperation, and for good reason. While the deal is only speculative at this point, it would be a slap in the face to Ukraine and the U.S.

 

     

References:

 

Mexico quietly sheds US energy dependence with Russia's offer of natural gas. thedailydigest.com. June 27, 2025. Mexico quietly sheds US energy dependence with Russia's offer of natural gas

Could Russia Supply Mexico With LNG, Replace U.S. Natural Gas Pipeline Imports? Christopher Lenton. Natural Gas Intelligence. June 26, 2025. Could Russia Supply Mexico With LNG, Replace U.S. Natural Gas Pipeline Imports?

Russia is ready to provide LNG to Mexico. World Energy News. June 21, 2025. Russia Is Ready To Provide LNG To Mexico

Russia LNG Deal Injects Geopolitics into Mexico Energy Trade: Russia’s LNG offer challenges U.S. dominance in Mexico’s energy trade and gas diplomacy. Charles Pitts. Skillings Mining Review. June 25, 2025. Mexico Energy Trade Faces Shake-Up as Russia LNG Deal Surfaces