Mexico

Mexican presidential candidate Andres Manuel Lopez Obrador said Tuesday that, if elected, he would seek to review exploration and production (E&P) contracts signed after the country’s 2013 energy reforms.

Cenagas, the Mexican natural gas control center, on Wednesday lifted a state of alert imposed on the Sistrangas natural gas storage and transportation system imposed by Harvey’s impact on U.S. imports.

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.

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

Because the Gulf Coast increasingly is the hub for natural gas exports and industrial demand, Hurricane Harvey may foretell what could occur in future natural disasters, according to Barclays Capital.

Mexico’s first natural gas price index,released on Aug. 18, offers an initial but still limited view of prices in the deregulating natural gas market.

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.

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