Mexico

After two days of discussion at the 3rd Mexico Infrastructure Projects Forum in Monterrey, Mexico, the role of natural gas has emerged as a bit of a problem child, albeit an important part of the nation’s ongoing energy reforms.

Howard Energy Partners (HEP) cited a variety of reasons Wednesday for a delay in starting up the Nueva Era pipeline, which would transport natural gas produced in the Eagle Ford Shale to markets in northern Mexico.

A BP plc executive suggested last Thursday that whatever ails the developing energy markets in Mexico can be resolved with patience and liquidity.

In the midst of Mexico’s historic energy reforms that are encouraging more private investment, both federal and state energy officials on Wednesday indicated their nation’s regulatory and market developments remain in a dynamic state of transformation at the start of 2018.

A Mexican energy official on Thursday said state-owned grid operator, Comision Federal de Electricidad (CFE), plans to launch an online natural gas trading platform by the end of March.

Premier Oil plc expects to kick off an appraisal program for the offshore Zama discovery in southern Mexico by 2H2018 or early 2019, according to a company trading and operations update.

The Mexican government expects domestic demand for natural gas to reach 8.32 Bcf/d in 2018 and hit 9.66 Bcf/d over the 15-year period from 2016, which works out to a compound annual growth rate of 1.6% a year, according to Mexico GPIcalculations.

The Mexican natural gas industry sought to allay concerns about potential natural gas shortages amid reports that the frigid temperatures in the United States were curtailing pipeline exports to its southern neighbor.

Renaissance Oil Corp., a relative newcomer to the industry, is facing a tough nut to crack in Mexico, but the Canadian-based producer is setting up to hit what it is eyeing as a home run in the Tampico-Misantla Basin.