NATGAS: Mexico Could Use Pipeline to Store Natgas
Mexico could use the recently completed Southeast Gateway pipeline in the Gulf of Mexico to store natural gas, amid growing trade tensions with the US, according to BNamericas, citing pipeline operator TC Energy.
- The mainly underwater 715km Southeast Gateway was completed on January 20.
- Mexico’s state-owned CFE has not finished construction of two combined combined-cycle gas turbine power plants that the pipeline will supply, so storage could be an alternative use, TC said on a Q4 earnings call.
- Mexico wants to boost storage capacity, currently standing at less than three days of its natgas demand.
- Mexico relies on the US for around 70% of its natural gas needs, BNamericas said.
- Mexico’s government is concerned that Trump’s threats over tariffs may lead to interrupted gas supplies from its northern neighbour. The US is the source of 70% of Mexico’s natural supplies.
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EUROPEAN INFLATION: MNI Sees Unrevised German December CPI
Looking at final state-level data released after the preliminary national print from January 6, MNI projects German national-level final December CPI was unrevised at 2.6% Y/Y and 0.4% M/M.
There is somewhat elevated uncertainty for the final national release on the back of:
- a) limited details from the individual states as of the preliminary print on January 6,
- b) a 0.2pp downward revision of the Bavaria December Y/Y figure for their final print, and
- c) the fact that Destatis had to issue a correction of the national level December HICP from 2.9% to the current 2.8% Y/Y.
| Y/Y | December (Reported) | November (Reported) | Difference |
| North Rhine Westphalia | 2.5 | 1.9 | 0.6 |
| Hesse | 2.4 | 2.0 | 0.4 |
| Bavaria | 3.0 | 2.6 | 0.4 |
| Brandenburg | 2.4 | 1.9 | 0.5 |
| Baden Wuert. | 2.6 | 2.2 | 0.4 |
| Berlin | 2.1 | 2.0 | 0.1 |
| Saxony | 3.2 | 2.9 | 0.3 |
| Rhineland-Palatinate | 3.0 | 2.7 | 0.3 |
| Lower Saxony | 2.6 | 2.3 | 0.3 |
| Saarland | 3.1 | 2.8 | 0.3 |
| Saxony-Anhalt | 3.1 | 2.5 | 0.6 |
| Weighted average: | 2.61% | for | 89.1% |
PIPELINE: $1B Citadel 2Pt Debt Launched
- Date $MM Issuer (Priced *, Launch #)
- 01/16 $1B #Citadel LP $500M 5Y +170, $500M 7Y +190
- 01/15 $Benchmark NLG Global Funding 5Y +95
- 01/15 $Benchmark Dexia 5Y SOFR+73a
- 01/15 $Benchmark NY Life 10Y +90a
- Expected to issue Thursday:
- 01/16 $Benchmark CABEI 3Y +75a
- 01/16 $1B Kommuninvest WNG 3Y SOFR+37a
- 01/16 $Benchmark CDP Financial 5Y SOFR+63a
US: Trump To Begin Presidency "In Delicate Position", NPR
A new survey from NPR/PBS News/Marist found that President-elect Donald Trump, "will begin his presidency in [a] delicate position,” noting that survey respondents “have high expectations that their personal financial situations will improve under Trump, but more think tariffs will hurt rather than help the economy.”
- NPR notes: “Trump has promised bold action, but, as the NPR poll shows, the politics may be tricky. Presidents often become vulnerable because of overreach. They tend to believe — falsely — that because they were elected, they have a mandate for everything on their agenda. Clearly, that's not the case.”
- Lee Miringoff at Marist notes: "The opening round of the second term is not going well with the public. Americans are not convinced of Trump's agenda pillars, including pardons and tariffs. Mass deportations are only getting mixed reviews."
Figure 1: Support for President-elect Trump's Policy Proposals
Source: NPR, Marist, PBS News
