Mexico is expected to close its $20 billion in exports to America because of US sanctions against the country’s gas companies.
The country’s largest gas company, Eneco, has said it will close all of its production and transportation operations, as well as all export terminals in the US.
Enecome will also cut its sales by 50 per cent.
Mexico’s President Enrique Pena Nieto said on Wednesday that he would not tolerate such a move and that the Mexican government would impose sanctions against anyone who did not comply.
“We will not accept this kind of behaviour, we will not tolerate this kind to our industry, this kind is unacceptable,” he said.
Mexico has also ordered that all US gas shipments be suspended and the country will also suspend imports from its suppliers.
The US imposed sanctions on Mexico’s energy industry in November after Mexico failed to curb its emissions.
Mexico shut its gas pipeline in December last year after a series of natural gas leaks in the state of Chihuahua.
The US Energy Department said in a statement on Wednesday the Trump administration was concerned about the potential for further leakage of gas in the pipeline network and has asked for the company to complete its work and return the gas to the country.
“If these activities continue, they will lead to the production of significant amounts of methane gas and associated emissions from the pipeline, potentially contaminating drinking water resources and the air we breathe,” the department said.
“The Department is continuing to monitor the situation and is committed to working closely with the Mexican authorities and partners to ensure the safety and integrity of the pipeline system.”