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

At the end of June, numerous capacity contracts for the transport of natural gas on a firm basis on the national Sistrangas pipeline system will conclude. Some of these contracts deserve special attention because of their size, such as the one between system operator Cenagas and Comision Federal de Electricidad (CFE) for 677,026.67 GJ/day which has been in force since February 2017. In total, CFE and its affiliates will see more than 900 MMcf/d in contracts lapse at the end of the month.  All this capacity in the hands of the most important player in the Mexican gas...