Expanding Gas Availability for Regional Industrial Growth

Mexico’s industrial expansion is increasingly tied to the availability and reliability of natural gas. As manufacturing hubs grow, energy planners face the dual challenge of meeting surging demand while supporting a strategic energy transition. Natural gas is positioned as a cornerstone fuel in Plan México, serving both as a bridge toward decarbonization and as a driver of industrial competitiveness. The country’s extensive pipeline network, combined with emerging interconnection projects, aims to expand access to regions that historically faced supply constraints, including the south, southeast, west, and central states. For industrial consumers, ensuring energy availability is not only a matter of operational continuity but also of cost efficiency and long-term planning.

Reliance on natural gas spans physical pipelines and flexible virtual pipeline solutions. While physical pipelines provide a stable and continuous supply, virtual pipelines offer mobility and adaptability, compressing gas at transfer centers for truck-based delivery to areas without direct infrastructure. During the “Expanding Gas Availability for Regional Industrial Growth” panel at Mexico Business Summit 2025, Juan Paulo Cervantes, Commercial Director, SOLENSA, emphasized that these models are not rivals but complementary. “Pipeline gas and virtual pipeline solutions like LNG or CNG do not compete, they complement each other,” he said. “Industries are growing faster than infrastructure investment in many regions. LNG allows gas to reach remote zones quickly and with low startup cost, while pipelines remain more cost-effective once the demand is justified.”

Each approach carries trade-offs: pipelines demand high upfront investment and longer timelines but offer predictable pricing and capacity, whereas virtual solutions allow faster deployment but depend on robust logistics, regulatory compliance, and safety standards. Industrial users weigh these factors when planning their energy procurement, balancing reliability, cost, and scalability against market volatility and infrastructure gaps.

Pipeline expansion remains a critical lever for regional development. Key opportunities exist in the south and southeast, where demand is growing rapidly and supply remains constrained. Projects such as the Puerta al Sureste pipeline and the Mayakan system expansion aim to strengthen delivery to the Yucatán Peninsula and surrounding areas. Sergio Charles, Energy Director at Protexa, noted that the complementarity between pipeline and virtual supply is also strategic. “Pipelines drive regional development by bringing clean, low-cost energy and helping communities grow,” he said. “Virtual pipelines, meanwhile, are driven by business decisions, fast, flexible, and controlled directly by industry. One responds to state development strategy, the other enables immediate competitiveness.”

However, these initiatives face hurdles including land access, regulatory approvals, financing, and construction timelines. Beyond expanding the network, strategic investments in gas storage are essential. Current reserves cover just two to three days of consumption if US supply is disrupted, highlighting Mexico’s vulnerability to external shocks, such as the February 2021 winter storms that forced rolling blackouts across 26 states.

Domestic production offers another pathway to secure the energy supply. Mexico holds significant unconventional reserves, including shale resources capable of reshaping the country’s energy outlook. Unlocking these reserves requires overcoming technical, environmental, and regulatory barriers, while ensuring sustainable extraction practices. Strengthening domestic production could gradually reduce reliance on US imports, improving energy sovereignty and providing a stable base for industrial growth.

LNG terminals, storage hubs, and other innovative distribution methods are increasingly critical to bridging regional gaps. Carlos Boone de Nova, Director of Corporate Affairs at Enestas, described the role of LNG as a solution designed for areas beyond pipeline reach. “We bring natural gas to regions where pipelines do not exist,” he said. “LNG is more expensive than pipeline gas, but there is no gas more expensive than the one you do not have. We are a bridge solution while pipelines arrive, but also a permanent answer where geographic, economic, or logistical barriers make pipeline connection unfeasible.”

Small and medium-scale LNG facilities, compression and decompression plants, and interconnection branches support the deployment of virtual pipelines, enabling flexible last-mile delivery. These solutions not only increase regional coverage but also create resilience against seasonal or logistical disruptions. Combined with continued investment in physical infrastructure, they represent an integrated approach to expanding natural gas availability while supporting Mexico’s industrial and economic ambitions. “Transporting gas by pipeline is inherently tied to long-term planning, substantial investment, and regulatory coordination,” noted Napoleon Cantú, General Director of TUBACERO. “Virtual pipelines, meanwhile, get to market faster. For Mexico’s long-term needs, both must move in parallel, one enabling immediate access, the other defining structural growth.”

As industrial demand continues to rise under nearshoring and export-driven growth, balancing pipeline expansion, virtual delivery, and storage solutions will define Mexico’s ability to sustain manufacturing competitiveness. Strategic planning, public-private collaboration, and timely investment remain essential to ensure that the country can leverage its natural gas resources efficiently while laying the groundwork for a cleaner, more resilient energy system.