Mexico Price Survey 1

The Mexico gas market is increasingly trading in the daily market, according to the third survey of natural gas buyers and sellers in Mexico conducted by NGI’s Mexico GPI.

According to respondents, 52% of all gas bought and sold in Mexico is done in the daily market, well above 12% in April 2019 and 28% in August 2019 surveys.

Monthly deals came in at 31%, down from 44-46% from the prior two surveys. Other, likely multi-month deals, have fallen steadily, from 32% in April 2019, to 20% last August, to only 7% in 2020.

“Part of this could be that some players are required to enter the market more on a daily basis for balancing purposes, but it also suggests more parties are becoming comfortable transacting in the new Mexico natural gas marketplace,” said NGI’s...