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.

CFE International (CFEi), based in Houston, operates as a natural gas marketer and is an affiliated company of the Mexican state-owned electric utility, Comisión Federal de Electricidad (CFE). For nine years, it has operated to maximize value by trading energy and fuels in international marketplaces and providing a crucial role in marketing the natural gas delivered to most of the power generation plants in Mexico.

Its current business model still aims to secure natural gas supply to CFE’s power generation plants and industry in Mexico at competitive prices....