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.


In the last decade, monumental infrastructure projects in Mexico have changed the landscape of the natural gas industry. The Ramones system bringing in U.S. gas was designed by Petróleos Mexicanos (Pemex) to solve the problem of critical alerts in central Mexico. As soon as its operation began, this system, which operated in coordination with the national pipeline system, became the main gas injection point throughout the country. Its 2 Bcf/d of transport capacity provided security of supply at the same time that Pemex’s production fell dramatically.

A few years...