Mexico

The fuel marketing unit of Mexican state power company CFE signed a $240 million natural gas supply contract with steelmaker ArcelorMittal, the former said in release on Monday.

Hurricane Harvey’s demand-killing impact on the natural gas market has been apparent since the Category 4 storm made landfall across the Texas coast late Friday, but things could turn decidedly more bullish — albeit temporarily — in the days to come as demand begins to creep higher while production remains offline, some analysts say.

Tropical Storm Harvey as of Monday had curtailed about 1 Bcf/d from U.S. natural gas exports to Mexico, according to Genscape Inc.

Hurricane Harvey’s demand-killing impact on the natural gas market has been apparent since the Category 4 storm made landfall across the Texas coast late Friday, but things could turn decidedly more bullish — albeit temporarily — in the days to come as demand begins to creep higher while production remains offline, some analysts say.

The natural gas-heavy Burgos Basin in northern Mexico accounted for 15% of the country’s total gas production in 2016, and foreign investment in the play could put it on par with the Eagle Ford Shale in South Texas, according to the U.S. Energy Information Administration (EIA).

The natural gas-heavy Burgos Basin in northern Mexico accounted for 15% of the country’s total gas production in 2016, and foreign investment in the play could put it on par with the Eagle Ford Shale in South Texas, according to the U.S. Energy Information Administration (EIA).

Mexico not only aims to conclude its Round 2 upstream auctions with one covering nonconventional sources, but energy officials now are eyeing a Round 3 that also would include one covering shale and tight resources before the end of 2018, according to the energy secretary.

Mexico marketers sold natural gas at an average of price $4.10/MMBtu in July, the first month since the country implemented its capacity reservation regime.

Mexican officials this week brushed aside concerns that the country’s upcoming presidential elections in 2018 could pose a risk for the nascent energy reforms taking hold in the oil and gas industry.