Mexico urgently needs to develop the fortitude of its natural gas industry, according to a new diagnostic analysis by local think tank Instituto Mexicano para la Competitividad, aka IMCO.


According to their research, Mexico natural gas demand grew 63% in the last decade and a half, hitting 8.27 Bcf/d last year. Starting in 2020, natural gas became the principal primary energy source in Mexico.

But despite affordable and abundant gas pouring across the border, Mexico remains highly vulnerable to external shocks, mainly due to a lack of underground storage.

“The lack of natural gas storage is one of the principal risks in energy security that Mexico faces,” the IMCO team said. The country is “particularly vulnerable” to abrupt changes in the market.

Researchers cited...