Mexico’s next government must invest in natural gas storage and pipeline infrastructure in order to keep up with rising demand and meet energy transition goals, according to a new report by the Instituto Mexicano Para la Competitividad (IMCO) think tank. 

Mexico is the world’s eighth largest natural gas market, with demand in excess of 8 Bcf/d. However, its natural gas storage capacity is a fraction of that of similar sized markets such as Germany or Italy, researchers said.

Despite the widespread global use of underground gas storage in depleted reservoirs, confined aquifers and salt caverns, Mexico only stores gas in its liquid form at the Altamira, Ensenada and Manzanillo liquefied natural gas import terminals, “which have limited capacity,” the IMCO team said in a...