Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.

Sistrangas

A recent investment agreement between steel giant ArcelorMittal SA and the Sistrangas pipeline operator Cenagas is big news in the Mexican natural gas market. The expanded capacity of the 442-kilometer branch that carries natural gas to Lázaro Cárdenas, site of ArcelorMittal’s main plant, would be open to users interested in supplying or increasing their consumption in the state of Michoacán. Cenagas is offering shippers 22.1 MMcf/d of uninterruptible capacity on the Valtierrilla-Cárdenas natural gas pipeline.The 24-inch diameter pipeline stretches about 275 miles...