NGI Mexico GPI

The state-centric policies of Mexico’s new government could threaten the autonomy of the country’s energy regulators, according to experts.

While natural gas producers in the Permian and Eagle Ford basins have welcomed the recent completion of pipeline projects on both sides of the US-Mexico border, several projects farther downstream in Mexico still face delays.

Natural gas futures prices came crashing down Friday as weather models all trended warmer for the rest of December, easing some fears about adequate supplies this winter. The Nymex January futures contract plunged 29.7 cents to $3.827, the first sub-$4 settle for the January contract since Nov. 12. February dropped 27.4 cents to $3.753, and March tumbled 25 cents to $3.606.

Mexican President Andrés Manuel López Obrador, who took office Dec. 1, had a tumultuous first week in office, with major implications for the energy sector.

Though hydraulic fracturing (fracking) has transformed the energy sector in the United States, only Argentina in Latin America has followed its lead in commercially developing hydrocarbons through unconventional drilling.

Natural gas traders clearly can’t agree on what the appropriate price for January natural gas should be as prices swung in a nearly 26-cent range before going on to settle a mere penny lower on Thursday.

Mexican President Andrés Manuel López Obrador affirmed last weekend plans to shift course at state power utility Comisión Federal de Electricidad (CFE).

The state-centric policies of Mexico’s new government could threaten the autonomy of the country’s energy regulators, according to experts.

Forecasts may be frosty in the days leading up to Christmas, but a lack of reinforcing cold shots seen in the days after sent natural gas prices barreling lower Wednesday. The Nymex January gas futures contract finally broke out of its recent trading wedge as it plunged 27.1 cents to settle at $4.136. February tumbled 22.3 cents to $4.035, and March dropped 18.8 cents to $3.853.