Mexico

A U.S. company has secured a long-term contract to build a liquefied natural gas (LNG) import project on the southern tip of Mexico’s Baja California peninsula, a region isolated from the country’s main energy transmission systems.

Mexico has a “historical imperative to reverse” President Enrique Peña Nieto’s landmark 2013 constitutional energy reform, according to the country’s likely next hydrocarbons undersecretary, Alberto Montoya.

Mexican regulators have issued updated rules for open seasons and capacity releases on pipelines in the country’s fledgling natural gas market.

In “Mexico Natural Gas Imports in May Averaged 5.15 Bcf/d, Sener Says,” the operator of the NET Mexico pipeline was incorrectly stated. The pipeline is an asset of NET Midstream LLC, which is owned by NextEra Energy Partners LP. NGI regrets the error.

Natural gas imports into Mexico grew 6.3% year/year (y/y) in May as pipeline shipments and liquefied natural gas (LNG) continued to make up for declining domestic output, according to the latest official data.

Natural gas pipeline capacity into the South Central region, the epicenter of anticipated demand growth from exports to Mexico and via liquefied natural gas (LNG) terminals, is expected to climb to 19 Bcf/d by the end of the year, according to the Energy Information Administration (EIA).

The energy platform of Mexico’s next government could negatively impact U.S. refiners and midstream companies, as well as the financial health of Mexico’s national oil company, Petróleos Mexicanos (Pemex), according to analysts.

Mexico’s largest natural gas transport network, the Sistrangas, is set to overhaul its pipeline tariff regime later this year, according to energy regulators.

Mexico’s two leading state energy companies, which are no longer monopolies but which continue to dominate their sector, recorded losses totaling $10.3 billion in the second quarter.