MoneyMike1
4 일 전
IMCO *still* talking about how Mexico needs natural gas storage! Interesting quote in here above how in effect the storage is mere hours, not even the commonly cited 2 days. Also, the point about the need for redundancy in the gas pipeline network would seem to be favorable for our San Fernando-Cactus rehabilitation project.
Mexico, without natural gas reserves
The country lacks storage space to ensure a short-term supply of the fuel needed to generate electricity; the national inventory would last only a few hours if imports are suspended.
Natural gas supply.PHOTO: Pedro Valtierra/Archive/CUARTOSCURO.COM
April 7, 2025 • Tania Rosas
While Austria has the capacity to store natural gas for 318 days, France for 98 days, and Italy for 93 days, Mexico only has a few effective storage hours, well below its goal of five days by 2026, warned the Mexican Institute for Competitiveness (IMCO).
“If you look at the storage capacity of the liquefied natural gas terminal tanks, we're talking about a little over two days of storage. But given the way in which it has to be injected and extracted—because it can't be pumped out all at once due to the terminals' coatings—we're talking about hours. In other words, we effectively have hours of storage in Mexico, while European countries have more than a month,” explained Óscar Ocampo, Director of Economic Development at IMCO."
Oscar Ocampo, Director of Economic Development at IMCO / @OscarOcampo
Natural gas generates 60% of Mexico's electricity.
The country relies heavily on natural gas, as 60% of its electricity is generated from this fuel. Therefore, the risk of a power outage could have serious consequences, such as the March 24 blackout that affected Campeche, Quintana Roo, Tabasco, and Yucatán.
Óscar Ocampo recalled that, in 2018, the government of former President Andrés Manuel López Obrador set a goal of having five days of inventory by 2026, taking into account projected demand for 2029. However, no significant progress was made. Claudia Sheinbaum 's administration has now resumed that goal.
Among the strategies of the previous government was the use of depleted deposits in Acuyo (Chiapas), Brasil (Tamaulipas), Jaf (Veracruz) and Saramako (Tabasco) as storage spaces.
Mexico depends on Texan gas and is vulnerable to climate change.
Mexico's dependence on imported natural gas from Texas , USA, represents a vulnerability. Although Texas has the cheapest gas in the world , it also faces disruptions due to extreme weather conditions.
“Texas' dependence on gas isn't bad news in itself, because it has the cheapest gas in the world. But it is bad news that when there's a cold snap, some pipelines freeze, gas demand grows within Texas, and supplies to Mexico are cut off. That's where you're in big trouble, because Mexico can't operate without Texan gas,” Ocampo warned in an interview with Ejecentral.
Cenagas Natural Gas. / Archive
The five-day storage goal is still achievable
Although it is not feasible to aim for the same storage levels as European countries, it is urgent for Mexico to reach the five-day target, especially given the possibility of extreme weather events. Ocampo stressed that the main obstacle is the lack of political will, since the necessary investment would not be high if it were distributed among the energy sector institutions: the Ministry of Energy, the National Center for Natural Gas Control (Cenagas), and the Federal Electricity Commission (CFE).
Insufficient pipelines and obstacles to their expansion
In addition to storage, Mexico faces problems with its gas pipeline infrastructure. “Another challenge is expanding pipelines and making them redundant, meaning that when one pipeline cannot operate, another can perform the same function to avoid interruptions,” Ocampo explained. The expansion of this infrastructure faces multiple obstacles: rights of way, agreements with landowners, conflicts with ejidos (common lands ), municipal governments, and even areas controlled by organized crime. All of this complicates the development of new pipelines and storage systems.
National natural gas production has fallen 35.1% since 2010.
According to IMCO, natural gas is an essential resource for power generation and various industrial activities. The lack of sufficient access at competitive prices poses a risk to the national economy .
Between January 2010 and September 2024, total domestic natural gas production fell by 35.1% , increasing dependence on imported fuel and exacerbating the need for efficient storage systems.
https://www.ejecentral.com.mx/nuestro-eje/mexico-sin-reserva-gas-natural#google_vignette
MoneyMike1
4 일 전
Is natural gas Trump's new weapon? Mexico only has enough for 2.4 days, and is vulnerable to pressure.
Mexico depends on U.S. natural gas; in 2024 alone, the country imported 6.408 billion cubic feet of natural gas per day.
The Mexican Institute for Competitiveness (IMCO) considered the country to be especially vulnerable to this situation, as more than 60 percent of its electricity generation depends on natural gas. (Shutterstock)
By Héctor Usla
March 12, 2025 | 3:40 PM
Mexico only has approximately 2.4 days of natural gas storage, making the country vulnerable to potential political pressure from President Donald Trump, according to experts consulted by El Financiero.
“In a span of seven years, the United States has gone from being an irrelevant supplier of LNG to the world’s largest, and will expand its production capacity by 60 percent in the first half of Donald Trump’s second presidency,” according to a BloombergNEF estimate .
By the end of the decade, nearly one in three tankers transporting this super-cooled fuel will originate in the United States, giving Trump his best chance of achieving the energy dominance he promised in his campaign, the analysis predicts.
“At the turn of the millennium, the United States was short on gas. It generated less than 15 percent of the country's energy, but has now more than doubled its natural gas production, to more than 100 billion cubic feet per day, and it now powers 41 percent of the country's electricity,” BloombergNEF noted.
How important is natural gas for Mexico?
In contrast, Mexico is dependent on U.S. natural gas. In 2024 alone, the country imported 6.408 billion cubic feet per day (MMcfd) of U.S. natural gas, its highest level ever, while domestic production reached 4.572 billion cubic feet per day (MMcfd), its lowest level in 21 years.
The Mexican Institute for Competitiveness (IMCO) considered the country to be especially vulnerable to this situation, since more than 60 percent of its electricity generation depends on natural gas.
"The infrastructure for this fuel is essential for Mexican energy security; however, Mexico lacks storage for this fuel , leaving us vulnerable to potential supply disruptions," the think tank noted.
In Mexico, there are only three private liquefied natural gas tanks located at the Altamira, Ensenada, and Manzanillo terminals, according to the study "Natural Gas: Ally of the Energy Transition and Promoter of Development and Prosperity," prepared by IMCO in partnership with the Mexican Natural Gas Association (AMGN).
Mexico tried to 'bet' on natural gas
Although the Ministry of Energy published the "Public Policy on Natural Gas Storage" in 2018 with the aim of facilitating the development of sufficient storage infrastructure to ensure Mexico had strategic and operational natural gas inventories and reserves, this project has not been followed up.
"At that time, the goal was set to have five days of inventory by 2026 with projected demand for 2029, which would require an investment of between $428.3 and $2.594 billion," the think tank emphasized.
Eva Ribera, general manager for ContourGlobal in Mexico, noted that Mexico has large reserves of natural gas, yet it doesn't exploit them because the United States sells the cheapest gas in the world.
"All countries need natural gas storage to ensure national energy security; however, these are investments that must be promoted by the public sector, not only for fear of being shut off, but also due to weather conditions," he said.
Sergio Romero, vice president of regulation and public affairs at Sempra Infrastructure, noted that energy exchange between the United States and Mexico is increasing, and that the country could even become a global hub for re-exporting natural gas from the South Texas basins to Europe or Asia.
“Regarding President Trump's tariff policy, I believe the energy issue doesn't fit into this logic, since the United States has an energy surplus, exports more than it imports from Mexico, and 70 percent of the natural gas consumed in the country comes from there,” he said.
Meanwhile, Juan Acra, president of the Mexican Energy Council (COMENER), considered that, in the face of these types of trade conflicts, the country must develop a roadmap to reduce its dependence on U.S. natural gas.
"In France or the US, they have 60 to 90 days of gas storage, and here, we have practically none, so we must relaunch our model and reduce imports," he stressed.
https://www.elfinanciero.com.mx/economia/2025/03/12/nueva-arma-de-trump-es-el-gas-natural-mexico-solo-tiene-para-24-dias-es-vulnerable-ante-presiones/
MoneyMike1
4 일 전
Why might Trump push for an 'energy cold war' against Mexico? The key is natural gas.
According to Santiago Villagómez, CEO of Energía Real, more than 50% of Mexico's energy mix depends on U.S. natural gas.
The United States is the leading exporter of natural gas to Mexico. (Photo: El Financiero)
By Héctor Usla
March 4, 2025 | 3:25 PM
President Donald Trump could launch an "energy cold war" against Mexico due to the country's heavy dependence on U.S. natural gas, warned Santiago Villagómez, CEO of Energía Real.
“Mexico is a major importer of gas from the United States, so we see certain dynamics in geopolitical tensions that could affect prices and availability, especially for medium- and large-scale users. This is a very relevant issue when we're talking about gas,” he said.
He warned that more than 50 percent of the nation's energy mix depends on U.S. natural gas, creating significant supply vulnerability that President Trump could exploit to pressure Mexico.
"We have two to four days of natural gas inventory, so it's a very relevant issue for the market, especially given the current geopolitical context with the United States," he said.
Therefore, he considered it very important to finance investment projects in storage .
The United States is already using the energy issue to put pressure on Canada, but Mexico has not yet been greatly affected in that regard, as it sells almost no energy to the U.S. market.
“However, we do import energy directly from California into the Baja California Norte electrical system ,” said the CEO of Energía Real.
The vulnerability in the natural gas supply could be exploited by Donald Trump to pressure Mexico. (Alejandro Cegarra/Bloomberg)
Canadian products will pay a special tariff of 10%
In Canada's case, Trump imposed 25 percent tariffs on all products, but also imposed a special 10 percent tariff on energy imports, as the country seeks to reduce its dependence on maple leaves.
Canadian products that will face a 10 percent tariff to enter the U.S. market include crude oil, natural gas, petroleum condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal resources, hydroelectric power, and critical minerals defined in U.S. legislation.
On the other hand, macroeconomic issues are what most concern players in the electricity sector in the face of President Trump's protectionist wave .
"We're concerned about the volatility of the exchange rate and the price of gas, and, above all, how our customers may be affected by tariffs, but that's no longer specific to the energy sector, but to all sectors," he said.
Despite this, the specialist believes it's unlikely that investments in the energy sector will stop. "I don't see investors moving away from Mexico ," he emphasized.
https://www.elfinanciero.com.mx/economia/2025/03/04/por-que-trump-podria-impulsar-una-guerra-fria-energetica-con-mexico-la-clave-esta-en-el-gas-natural/
shajandr
1 월 전
CMW's obligations to ECCI, GMEI, and TIDE baggholders precede his obligations to MRGE baggholders. All four are EM turds. Baggholders of all four have been totally wipeDoubt. CMW has personally made bank on all four of them, hence his >$1,000,000 Bluffgate home and never needing to have a real yobb his entire life.
Pennygrifting is pretty lucrative if you know how to do it, and CMW learnt at the knee of his pennyscamming daddy. He has nearly 70 years of experience at it.
So MRGE baggholders must go to the back of the line leading to the Bluffgate palace in their quest for making delinquent, moribund CMW tickers current. And it is a very long line!
CMW taking yett another group of retail pennyvestors for a ride - on the same track he's used many times before
Rockville Rockheads and Baltimorons make another "investment" in MRGE following the Sunk Cost Fallacy strategery
As per usual, CMW will utilize the munny appropriately and as-agreed
Busted, brokeass MRGE baggholders need to gett in the back of the line of claimants asking/begging CMW to gett their ticker(s) current
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