NGI Mexico GPI

Mexico’s IPGN monthly natural gas price index averaged $2.22/MMBtu in March, the lowest price recorded since its inaugural publication in July 2017.

Major moves along the natural gas futures curve continued Thursday, with early selling intensifying once traders had time to digest the latest storage data. The May Nymex gas futures contract erased all of the previous day’s gains and then some, settling at $1.815, off 12.4 cents. June dropped 11.1 cents to $1.942, with the entire curve ending the day in the red.

Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column as part of a regular series on understanding this process, written by Eduardo Prud’homme.

Early selling in natural gas futures failed to hold, with erratic, non-fundamentally driven price fluctuations continuing midweek. After sinking to a $1.774 intraday low, the May Nymex gas futures contract settled Wednesday at $1.939, up 11.8 cents on the day. Increases continued throughout the curve, with June picking up 6.9 cents to hit $2.053.

U.S. exploration and production (E&P) companies arecuttingcapital expenditure (capex) by 35-40% from 2019 as oil prices continue to get hammered and demand is destroyed by the coronavirus pandemic, but spending reductions could be even harsher south of the U.S. border.

The Energía Costa Azul (ECA) liquefied natural gas (LNG) export project in Mexico’s Baja California is still set for a final investment decision this quarter pending the receipt of an export approval, Infraestructura Energética Nova (IEnova) executives said during a first quarter earnings call.

One day after an oil market tailspin sent natural gas futures exploding higher, May natural gas stopped to catch their breath before going on to nosedive.

Energy companies big and small operating in Latin America’s upstream segment have announced spending cuts as oil prices continue to get hammered and demand is destroyed by the coronavirus pandemic.

Despite a punishing sequence of events over the last few days for Mexico and state oil company Petróleos Mexicanos (Pemex), President Andrés Manuel López Obrador on Tuesday downplayed the potential impacts of current market turmoil.