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.


Natural gas volumes inside a pipeline system flow from a high pressure section to a low pressure section. Processing centers and production fields are points where high pressure makes gas injection possible. In contrast, gas extractions occur because the consumption sites along the pipeline use gas under lower pressure conditions than those present in the section of the transportation system where they are interconnected.

The objective of a pipeline transmission system operator such as Cenagas is to ensure that pressure differentials cause flows in the right...