Mexico's Private Natural Gas Production Rises 1.3%

National natural gas production reached 4.62Bcf/d in June 2024, representing an increase of 2.6% against the previous month. Private production also increased 1.3% to 196.2MMcf/d from 193.7MMcf/d, led by Tecpetrol, according to data from CNH.

Servicios Múltiples Burgos (Tecpetrol) stands out as the leading private operator in the natural gas segment, with a production of 66.6MMcf/d in June, accounting for 33.9% of the total private production in the country. Following Tecpetrol, Eni México produced 24.7MMcf/d (12.6% of the total), Perenco México produced 19.6MMcf/d (9.99%), Fieldwood Energy México produced 16.3MMcf/d (8.3%), and Consorcio Petrolero 5M Del Golfo produced 13.8MMcf/d (7%).

Servicios Múltiples Burgos continues to operate the Mision field in northeastern Mexico, within the Burgos Basin. This field, spanning 1,307.15km², has undergone several extraction phases since its inception between 1966 and 2004, reaching peak production in 2010. Currently in its third phase (2018-2024), it operates 113 active wells. The latest update to the Development Plan, approved on Dec. 15, 2022, includes the transition of the Provisional Measurement Points to Fiscal Measurement Points.

Looking ahead, the country is preparing for liquefied natural gas (LNG) exports to Europe and Asia starting in 2025, primarily sourced from US shale basins. Projects like the expansion of the Energía Costa Azul terminal in Baja California and the construction of the Saguaro Energía facility in Sonora are set to enhance Mexico's role in the global LNG market. With investments totaling US$20 billion by 2024, Mexico is positioned to become a major player in LNG exports, leveraging its strategic geographical location and partnerships with international energy firms:

• Energía Costa Azul - Ensenada, Baja California: Expansion to accommodate LNG exports starting in 2025, operated by Sempra Energy.

• Saguaro Energía - Puerto Libertad, Sonora: Construction slated to begin in 3Q24, aiming at LNG exports to China, operated by Mexico Pacific Limited.

• Vista Pacífico - Topolobampo, Sinaloa: Medium-scale facility jointly developed with CFE, operated by Sempra Energy, with an export capacity of approximately 3.5Mt annually.

Malvin Delgado, Director of Sales and Client Engagement LATAM, Picarro, mentioned at Mexico Business Summit, that natural gas will guide the energy transition over decades to come. “When burnt correctly, [since] it is one of the kindest fossil fuels with the environment: it is cheap, it is available, and the infrastructure supports to a very good extent economic development,” she said.