Tesla Asks for Natural Gas Connection in Nuevo Leon

Earlier this year, the confirmation of a Tesla Gigafactory in Nuevo Leon marked a significant milestone for the state's nearshoring-driven investment attraction efforts. However, a critical hurdle to properly serve these new projects has been the lack of infrastructure and energy resources. To address this, Nuevo Leon has committed to building the necessary infrastructure to accommodate new arrivals, including Tesla.

According to Bloomberg Línea, Tesla's Memorandum of Understanding (MoU) with the Nuevo Leon includes demands for key infrastructure provisions, including railways, electricity, water supply and roadways to commence construction of the new plant in the northern state. To develop these works, the Nuevo Leon government and Tesla agreed on a 2% incentive against the total investment made by Tesla, which Nuevo Leon Governor Samuel García highlights as an improvement against the 10-15% incentives offered by previous administrations to other companies. He said that he will meet with José Francisco Gutiérrez Cantú, Head of the Strategic Projects Trust (FIDEPROES), to formally authorize the agreement.

The MoU explicitly states that Tesla requires a natural gas pipeline. Bloomberg Línea reported that, according to Eduardo Prud'homme, a partner at the energy firm Gadex and former Head of Technical Management and Planning, CENAGAS, there are several options for the construction and connection of the gas pipeline through companies like Kinder Morgan or Grupo Clisa, which have pipelines nearby. Sempra Infraestructura is another option, although it is farther from the municipality. Prud'homme estimated that obtaining a new permit or modifying a gas pipeline permit takes between six and nine months with Mexican authorities, but he suggested that it could take years with the current government. If Tesla opts for an interconnection to an existing gas pipeline, the construction could take approximately three months.

Among other necessary projects,  García announced plans to authorize the construction of an underpass to connect the Tesla Gigafactory to the Santa Catarina Beltway. 

Amid rumors of the project's cancellation, García stated on the X social network that the investment remains intact. Representatives from the company also refuted the cancellation rumors. Rohan Patel, Government Relationships Director, Tesla, clarified the situation. "It is BS clickbait and should be ignored. This article is one of many I have seen that incorrectly and randomly comments on our Mexico plans. We will continue to make progress with the local, state, and federal governments and we are very appreciative of their efforts to enable the permits and sustainable infrastructure necessary."

Minister of Economy, Raquel Buenrostro, recently commented that the ministry has not had any dealings with Tesla and lacks information about the investments the company plans to make in Mexico, however.