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Natural gas development in Mexico

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  • Lajous-Vargas, Adrian

Abstract

Mexico, with a very large manufacturing sector, has a well-developed domestic industrial market for natural gas. Gas accounts for 45% of all energy consumed in Mexican industry. Pemex, the national oil company, is the largest natural gas consumer in the country, using gas as a fuel for oil field operations, pipelines and refineries, and as a fuel and feedstock for the production of fertilizer and petrochemicals. Gas also is heavily used in electricity generation and in manufacturing steel, cement, paper, and other products. Continued rapid growth is anticipated in all of these sectors. In the short run, no additional gas can be made available for export, since gas processing facilities in the southern pan of the country, as well as the trunkline to northern Mexico, are already operating at capacity. Longer run availability of gas for export will depend on export price in comparison with the value of gas in domestic uses. An export price tied to residual fuel oil prices may be inadequate to stimulate additional Mexican gas exports. Current gas development priorities for Mexico include the elimination of flaring, the enhancement of gas-conservation efforts, the restriction of boiler fuel consumption, and the rationalization of domestic gas prices so that the differential over heavy fuel oil prices is increased.

Suggested Citation

  • Lajous-Vargas, Adrian, 1985. "Natural gas development in Mexico," Energy, Elsevier, vol. 10(2), pages 129-138.
    • Handle: RePEc:eee:energy:v:10:y:1985:i:2:p:129-138
    DOI: 10.1016/0360-5442(85)90077-5
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    Cited by:

    1. Jano-Ito, Marco A. & Crawford-Brown, Douglas, 2016. "Socio-technical analysis of the electricity sector of Mexico: Its historical evolution and implications for a transition towards low-carbon development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 567-590.

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