Mexico Will Remain Tied to US Gas
Mexico is likely to remain a net importer of natural gas for the next 20 years, independent consultant Aldo Flores-Quiroga said March 13 at IHS Markit’s CeraWeek in Houston.
Flores-Quiroga, who was Mexico’s deputy secretary of hydrocarbons between 2016 and 2018, said the country is currently producing about 3bn ft3/day, while demand is around 8bn ft3/day, leaving around 5bn ft3/day that is mainly imported through pipelines.
Looking forward, the scenario will not change much, he said.
“There is potential to more than double our production over the next 15 to 20 years, with information we currently have and exploring all the basins in Mexico,” he said. “However, that would still not be enough to cover estimated natural gas demand over the same period.”
Gas demand in Mexico over the last 15 years has increased mostly because of the power sector. Given the huge increase in gas output in the US, Flores-Quiroga said Mexico has decided it makes sense to use this cheaper gas to generate electricity.