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Mexico needs to revive its bidding rounds for new areas and open itself to the possibility of hydraulic fracturing (fracking) if it seeks to increase domestic natural gas production and stem the flow of imports from the United States, according to Commissioner Héctor Moreira of the country’s upstream regulator Comisión Nacional de Hidrocarburos (CNH).

Speaking at the 5th Mexico Gas Summit in San Antonio, TX, on Wednesday, Moreira said Mexico needed to apply an “oil mentality” to its natural gas reserves.

“We have to increase investment. We have to change the policies and the tax situation for producing gas. We have to change the mentality for natural gas and apply the oil mentality for it.”

Moreira said that of domestic production of 3.8 Bcf/d, one-half is used by state oil firm Petróleos Mexicanos for its operations and for pressure at fields. Imports currently account for 5.373 Bcf/d, or 78% of Mexico’s dry natural gas requirements.

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