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BP Ramps Up NatGas Service to Eight Mexico States

BP plc, North America’s largest natural gas supplier, is now delivering 200,000 MMBtu/d to Mexico industrial users, local distribution companies (LDC) and independent producers in eight states.

The London-based major said Tuesday BP Energía México is one of the first private companies to supply gas to the domestic market under Mexico’s energy reform measures.

The gas supply announcement comes after BP’s Mexico unit earlier this year was awarded pipeline transportation rights at an auction by system operator Centro Nacional de Control del Gas Natural (Cenagas).

In addition to agreements with other transporters and LDCs to offer bundled gas service, the BP Mexico unit also has executed a firm transport agreement with Cenagas.

“We see this as an important milestone in BP’s increasing involvement in and commitment to Mexico,” said BP Energy Co. CEO Orlando Alvarez. BP Energy is the North American energy marketing and trading group of which BP Energia México is a part.

“We intend to continue to grow our Mexican customer base and be a reliable supplier of natural gas into the country for many years to come,” Alvarez said.

Delivery has begun across Nuevo Leon, Coahuila, San Luis Potosi, Veracruz, Mexico State, Guanajuato, Tamaulipas and Queretaro.

The most sought-after take-up point during the Cenagas open season was Los Ramones, which runs from the Eagle Ford Shale to Central Mexico. Sixteen companies reserved capacity there including BP. Los Ramones I, which runs from the Eagle Ford Shale to Los Ramones in Nuevo Leon, Mexico, ramped in late 2014.  Phase II moves gas to Guanajuato to supply central and western Mexico.

In the Cenagas open season BP won 200 MMcf/d of capacity on NET Mexico, which connects into Los Ramones, which in turn connects with Los Ramones II. The pipeline corridor traverses many of the eight states that BP said it is now serving, and the states are contiguous.

BP already is exploring and developing oil and gas in Mexico. Last December the oil major participated in Mexico’s first tender for deepwater licenses, winning interests in two exploration blocks in Cuenca Salina in the Southeast Basin.

The company has invested in Mexico for more than 50 years, beginning with Castrol marketing and distribution. In March BP opened its first fuels retail site in Mexico, and it plans to open around 1,500 sites across the country over the next five years.

“BP has a long history in Mexico and we are looking to continue to grow our presence here in line with the country’s energy reforms,” said BP’s Chris Sladen, who is head of country. “Supplying natural gas is another step forward, building on our other businesses and bringing new offers to Mexico’s consumers as we seek opportunities across the energy sector.”

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