NGI Mexico GPI

Mexico’s state power utility, the Comisión Federal de Electricidad (CFE), has approved the construction of three natural gas-fired combined cycle power plants with total capacity of 1,720MW. The projects will be built in the center and northeast of the country, the company said in a statement.

It was probably something other than superstition that had bears fleeing the natural gas futures market Friday even as analysts continued to point to oversupply conditions. The October Nymex contract rallied 4.0 cents to settle at $2.614/MMBtu. November surged 4.8 cents to $2.653.

Mexico’s government and national oil company, Petróleos Mexicanos (Pemex), are in no position to embark on a reversal of the country’s nascent energy sector liberalization, according to three experts from Rice University’s Baker Institute for Public Policy.

Natural gas bulls regained some of their lost momentum Thursday after last week’s heat helped produce a smaller-than-expected inventory build in the latest government storage data. After slipping during the previous two sessions, the October Nymex contract gained 2.2 cents to settle at $2.574/MMBtu; November added 1.6 cents to $2.605. In the spot market, cooler…

Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following question-and-answer (Q&A) column as part of a regular interview series with experts in the Mexican natural gas market.

Mexico must capitalize on its access to cheap and abundant natural gas north of the border, and on its own regulatory framework for developing the entire gas value chain, according to Acclaim Energy Solutions’ David Madero Suárez, who directs the firm’s energy consulting practice.

With another hefty weekly inventory build expected this week, and with analysts pointing to a possible end to the recent short-covering rally, natural gas futures declined at the front of the curve for a second straight session Wednesday. The October Nymex contract settled 2.8 cents lower at $2.552/MMBtu, while November dropped 3.1 cents to $2.589.

Coming off big gains the previous two sessions, natural gas futures stalled Tuesday as a rally in the early morning hours quickly lost steam. The October Nymex contract settled at $2.580/MMBtu, off 0.5 cents after trading as high as $2.648. November also fell 0.5 cents to settle at $2.620.

Mexico’s President Andrés Manuel López Obrador announced on Wednesday that a deal has been reached with local pipeline company Fermaca, bringing to an end a months-long conflict over natural gas pipeline contracts in the country.