NGI Mexico GPI

As Mexico’s proven natural gas and crude reserves fall ever rapidly, analysts point to a “black hole” that is tied and bound in the red tape of bureaucracy.

Cooler forecast trends over the Easter holiday weekend helped natural gas futures bounce Monday to recover some of the declines recorded last week. Mild temperatures and numerous maintenance events continued to shape the spot market as points in the Rockies posted large day/day gains; the NGI Spot Gas National Avg. tacked on 15.5 cents to…

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. This is the fifth in the series.

In a move that could be considered risky given the long Easter holiday weekend, natural gas traders continued to grind futures prices lower on Thursday, pushing the prompt month to a multi-year low. The May Nymex gas futures contract settled at $2.49, down 2.7 cents on the day. June slipped 2.4 cents to $2.535.

Having already suffered prolonged power outages in March and April, Mexico’s Yucatan Peninsula faces the risk of more blackouts as summer approaches because of scarce natural gas supply and insufficient power transmission infrastructure, according to experts.

Natural gas bears were emboldened after taking out a long-held key support level on Wednesday with weather models trending increasingly warmer. The Nymex May gas futures contract settled 5.5 cents lower at $2.517/MMBtu, and June settled 5.8 cents lower at $2.559.

Vast pipeline systems in Mexico crucial to delivering U.S. natural gas production to thirsty markets in Mexico remain stalled with little clarity as to when they might come online.

Talos Energy Inc. on Monday reported successful results from the Zama-2 ST1 appraisal well at the Zama shallow water discovery in Mexico’s Sureste Basin.

Strong bearish sentiment was too much for natural gas bulls to overcome Tuesday even as the latest weather data added some demand back into forecasts. However, after Monday’s 7-cent plunge, the Nymex May gas futures contract took somewhat of a breather and ultimately settled only 1.8 cents lower at $2.572/MMBtu. June slid 1.6 cents to $2.617.