José García Sanleandro
President
AMGN Asociación Mexicana de Gas Natural
/
Expert Contributor

Natural Gas a Growth Engine for Mexico

By José García Sanleandro | Thu, 04/07/2022 - 17:00

The energy sector is vital for a country’s economy. It is synonymous with growth and evolution among all the industries that depend on it. For this reason, having fuel at costs that are accessible and competitive – virtues that are inherent in natural gas – and that at the same time improves the quality of life of the population and reduces CO2 emissions is, simply stated, essential.

However, not all areas of the country have access to this type of energy, which keeps them socially and economically underdeveloped compared to other regions.

Data from Mexico’s National Institute of Statistics and Geography (INEGI) shows that states that have access to natural gas increase their Gross Domestic Product (GDP) by up to 50 percent, which translates to a better quality of life for residents.

In addition, Mexico is in a very favorable geographical location in comparison to other countries, since it is located in an area with significant natural gas reserves and some of the cheapest prices for this hydrocarbon.

If we want to take advantage of these benefits in Mexico, we are obligated to develop a strategy that will allow us to ensure that this type of energy reaches all corners of the country, since it will undoubtedly directly benefit homes, businesses, industry, mobility and the electricity sector.

To reach the most distant locations, it is necessary to have proper infrastructure for transportation and distribution. Natural gas may be able to be the “head of the spear” for the establishment of industries that would generate more and better jobs. It is worth noting that the natural gas industry has state-of-the-art technology to develop projects quickly, bringing economic benefits and improving the air quality in principal cities through the use of natural gas for vehicles and the activities of transportation and distribution of natural gas by virtual pipelines to supply industries.

It is also necessary to strengthen the storage infrastructure of natural gas, which in our country has great opportunities. The Netherlands and Germany have between 151 and 100 days of reserves. Following these examples would be a huge investment in Mexico’s energy security.

Storage infrastructure would allow Mexico to face a weather event such as the one occurred in Texas in February 2021, which interrupted economic activity and the operation of the electricity grid in some Mexican states, mainly in the north of Mexico. For this, the participation of all the actors involved is essential, working hand-in-hand with authorities at all three levels of government.

Today, energy demand has increased in several sectors as the country’s economy reactivates following the COVID-19 pandemic; therefore, our task is to maximize the use of current infrastructure and develop new projects that allow us to ensure a safe and reliable supply of natural gas for the present and future demand in the country for all users.

Natural gas has proven to be the best option for business, vehicles, residential consumers, and of course, for the generation of electricity; therefore, working together as an industry will help us face Mexico’s new challenges, while always prioritizing equal access opportunities for all.

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