The world’s economies and energy systems have undergone profound transformation over the past four years due to the double whammy of Covid-19 and Russia’s invasion of Ukraine. As a result, North American energy markets have grown more integrated, with U.S. natural gas pouring across the border to serve Mexico’s growing industry, and its developing LNG export plans. All this points to a tremendous opportunity for participants in the natural gas industry on both sides of the U.S.-Mexico border.
This 16-page NGI Special Edition looks at what these seismic shifts mean for the natural gas market in Mexico. Through articles, interviews, and columns, our experts analyze the major political, natural gas pricing and energy infrastructure trends shaping the sector and what to expect in the years to come.
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“We have to be prepared for the opportunities that will present themselves post-2024,” said Duncan Wood, vice president of strategy and new initiatives at the Wilson Center think tank.
It should not be difficult for prevailing energy policy makers to see that transparency, non-discriminatory regulation and efficient capacity management are essential to their industrial policy objectives. Open seasons in the Sistrangas should be the standard practice for the efficient expansion of its capacity.
“Until we look at the market and come up with a Mexican gas reference price that reflects the fact that the alternative is importing gas from the U.S., and allows the producers to realize at least a portion of the transportation premium, we’re always going to be at a cost disadvantage…” said Jaguar Exploración y Producción CEO Warren Levy.
CFE imports more than half of Mexico’s total gas supply via pipeline from the United States. Private marketers, meanwhile, import about 16% of Mexico’s total gas supply, according to a presentation this month by Aniel Altamirano, deputy general director of CFE’s domestic gas marketing affiliate CFEnergía.
“Latin America could become a net LNG exporter [by 2030] if the majority of proposed projects reach” final investment decision or FID, Chapa said.
Through development of gas-rich fields such as Quesqui and Ixachi, Pemex has managed to stabilize a more than decade-long slide in natural gas production.
"We are working on the first biogas project connected to the natural gas network in Mexico, with the objective to inject green gasses into the distribution network" Eva Ribera, Vice President of Business Development & Implementation at Engie Mexico, told NGI's Mexico GPI.