SENER Reports 2022’s Natural Gas Production, Imports
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SENER Reports 2022’s Natural Gas Production, Imports

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Perla Velasco By Perla Velasco | Journalist and Industry Analyst - Mon, 12/12/2022 - 13:12

SENER reported that natural gas consumption has increased steadily over the past years while production has been declining since 2015. Mexico’s gas imports have therefore increased. In the first eight months of 2022, demand reached 8,365Bcf/d while production reached only 2,521Bcf/d. Imports reached a total of 5,842Bcf/d to meet the demand. 

Mexico reached its lowest production levels in 2021. In 2022, the country saw a slight increase compared to decreases. Nevertheless, increased demand led to further imports. Since the implementation of the Sur de Texas - Tuxpan pipeline in September 2019, Mexico’s liquefied natural gas (LNG) imports gradually decreased.

Since 2016, Mexico has reduced production by 25.4 percent, falling from 2.90Bcf/d to 2.17Bcf/d. As a result, processing has plummeted too: The Poza Rica processing center in Veracruz, for example, registered a reduction of 128MMcf/d in 2016 to 35MMf/d in 2022. The center with the lowest production is Matapionche, with 8MMcf/d.

According to SENER, PEMEX’s gas production could drop by 16 percent by 2028. Compared to the current 4.26Bcf/d, in approximately six years the NOC could extract 3.4Bcf/d, and private companies could extract 395MMcf/d. In a more optimistic scenario, gas production could increase by 5.3 percent and reach 4.25Bcf/d in 2028.

Gas prices also remained in line with international prices. The north of the country reported the highest prices, reaching up to US$8.15/MMBtu in September, while the southeast reported the lowest gas prices US$7.75/MMbtu in the same month. In October prices in the same areas fell to US$5.48/MMBtu and US$5.5/MMbtu respectively.

SENER’s report highlights the installed infrastructure of pipelines in the country. The Mayakan pipeline’s injection capacity increased over the year, enhancing its ability to cater to the Yucatan peninsula. CFE recently announced a collaboration with Engie to extend the pipeline, connecting it with two combined cycle plants, Merida IV and Valladolid IV, which together have a capacity of over 1.5GW. Furthermore, CFE and TC Energy’s US$4.5 billion Southeast Gateway project may become the main supply channel for the Mayakan pipeline expansion. The offshore Sur de Texas - Tuxpan pipeline, which entered into operation in 2019, has also increased its injection capacity this year but at a lower rate compared to Mayakan.

According to Rocío Nahle, Mexico’s Minister of Energy, on SENER’s analysis at the Senate, the National Natural Gas Control Center (CENAGAS) reported that the capacity to interconnect and distribute gas increased, widening CFE’s ability to sell its surplus supply to the industrial sector.

Photo by:   JJ Ying

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