Mexico’s Residential, Vehicular Natural Gas Segments Remain Largely Untapped, Experts Say

Mexico’s natural gas market presents numerous growth opportunities, including the largely untapped residential and vehicular segments, a panel of experts agreed Friday.

The discussion was part of the Encuentro Internacional de Energía México 2020 event organized by Oil & Gas Magazine.

Ricardo Ortiz Hernández, a board member of the Asociación Mexicana de Gas Natural (AMGN), said that despite the efforts of local distribution companies (LDCs) to expand their customer bases, natural gas penetration in the residential segment is about 7%, below that of propane and firewood. Penetration in the industrial segment, meanwhile, is about 70%, he said.

AMGN is a trade group composed of more than 100 member and affiliated companies in the Mexican natural gas market.

A major...