Natural Gas Infrastructure Is Key for Mexico’s Development: GENSA

Q: How does GENSA distinguish its solutions from its competitors in the market?

A: GENSA is an EPC. We design all the products and solutions required by the market. We also guarantee that the projects, products and services we offer comply with national and international standards and regulations. The complementary nature of our solutions portfolio gives us a clear competitive advantage in the market. In addition, GENSA is constantly innovating; we were the first company to design and build a gas decompression station in Mexico. This year, we were pioneers in designing and building a gas station capable of processing a mixture of 70 percent methane and 30 percent hydrogen, demonstrating our leadership in energy transition solutions. 

Q: How are GENSA’s operations distributed in Mexico?  

A: GENSA has 15 business verticals that are distributed according to the country’s territorial needs. In the southeast, we operate natural gas transportation systems for private companies. In the Bajio and northeast, we operate systems for hydroponic greenhouses. In the north, we operate systems for steel companies and industrial parks. Our business lines include engineering, stations, gas transportation, generation, CNG, VGN and hydrogen. The brain of our operation is at our Cuautitlan Izcalli plant, from where the engineering services we offer and the 250 annual average projects we manage are handled. 

Our operations also extend abroad. We have an office in Carlton, Texas, to serve the Texas and California markets. We are also present in Central and South America in Chile, Panama, Colombia and El Salvador. 

Q: What is the state of Mexico’s gas infrastructure and what are the areas of opportunity the country should prioritize?

A: Gas transportation infrastructure in the country was strengthened thanks to the construction of private gas pipelines that entered with transportation companies. This infrastructure has provided natural gas coverage to a portion of the national territory. However, in Mexico, there are still many regions without access to gas pipelines, especially in the southeast. Currently, there is a pipeline under construction to bring gas to the region. However, there is a lack of infrastructure to serve the markets of Guerrero and Chiapas. 

GENSA has manufactured around 80 percent of the natural gas regulation, measurement and control stations for the domestic market. The absence of transportation pipelines has limited our growth, however, as we cannot enter certain areas. This situation has prompted us to innovate in our products and solutions beyond station manufacturing, diversifying our portfolio and the markets in which we operate. 

As transportation companies resume their investment projects and are granted new permits to build more pipelines, GENSA is ready to meet their needs related to the construction of pipelines, transportation stations and interconnections. GENSA is also accredited by the Energy Regulatory Commission (CRE) to operate systems that are connected to the national pipeline network. We operate more than 60,000m of gas pipelines with seven transportation systems nationwide. This experience allows us to participate with transportation companies throughout the value chain to strengthen the national natural gas infrastructure. 

Q: What impact does the energy policy have on the future development of Mexico's natural gas industry? 

A: Currently, Mexico does not have a clear strategy for strengthening its natural gas industry. Over the past three years, the regulatory authorities in charge of approving permits have stopped issuing permits for the development of new projects to strengthen national gas infrastructure. The permits that have been approved have been for gasoline, while permits for gas transportation have been held up. As long as regulatory authorities do not relax their policy toward investment companies in Mexico, gas transportation will not be strengthened. 

Furthermore, the current government has decided to strengthen the oil industry over natural gas production as part of its energy policy. As long as there is no clear strategy to promote the extraction and production of natural gas, Mexico will continue to depend on the US market to cover its natural gas energy needs. 

Q: How will green hydrogen transform and improve energy generation in Mexico?

A: In Mexico, our states are very interested in generating green hydrogen, two of which are already close to starting the generation processes. However, raising the necessary investment to kickstart the green hydrogen industry is a challenge that will take time. The main obstacle facing the mass commercialization of hydrogen is its cost. We expect that in the coming years, production costs will be reduced, which will allow us to expand this energy source as an economically viable and clean option. 

At GENSA, we are already building solutions focused on green hydrogen, mainly by offering companies the ability to generate their green hydrogen through electrolysis. We also have our first station in Mexico ready to service the domestic market. We are working with a partner in the limestone industry, where authorities are requiring a reduction in carbon dioxide emissions by injecting hydrogen into their natural gas mix.