Mexico to present five year pipeline plan

Mexico will present its five year natural gas pipeline expansion plan in the coming weeks, with which the country aims to extend the national transportation network to 20 000 km by 2018, according to the Energy Ministry.

The plan, to be announced by the national gas control centre (Cenagas), will guarantee a trustworthy and continuous supply to the entire country at competitive prices, according to Energy Minister Pedro Joaquín Coldwell.

Sener announced in May last year that Mexico would build 22 natural gas pipelines over the next 15 years.

The pipeline expansion plan is part of Mexico's strategy to convert oil-fired power plants to natural gas.

"At the end of the administration of President Enrique Peña Nieto, irrespective of the volatility of international hydrocarbons prices, Mexico will have a new, robust energy system, fed by many new players," Coldwell said.

Midstream potential

The potential for new midstream infrastructure in Mexico presents a booming opportunity for midstream companies.

The bids available for midstream companies to form joint ventures with Mexican companies vary in size and scope, making room for major midstream builders, such as Dallas-based Energy Transfer Partners LP, and smaller midmarket companies.

Mexico’s ambitions for growth

Mexico’s Energy Secretariat projects its GDP will grow another 3.6% in 2016, and the U. Department of Agriculture’s Economic Research Service predicts that Mexico’s GDP will grow 58% by 2030.

Economic growth means increased electricity consumption and more than half of the total demand for natural gas in Mexico is coming from the electricity sector.

Mexico’s Energy Secretariat projects that the growth in demand for electricity will accelerate to an average annual rate of 4.4% through 2028.

Further accelerating demand for natural gas is Mexico’s plan to reduce the use of fuel oil for power generation to only 10% of 2012 levels by 2017, mostly in favour of natural gas.

Pipeline capacity into Mexico continues to expand. Capacity will rise in the coming years, as several companies are already making investments to advance pipeline expansions into Mexico, including Energy Transfer Partners, Sempra Energy, Kinder Morgan and Pemex.

Edited from various sources by Elizabeth Corner

Sources: BN AmericasBiz JournalsGlobal Trade Mag

Published on 01/09/2015


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