Supply & Demand

Supply security pivotal to Mexico’s gas strategy

Mexico will struggle to reduce its dependence on US LNG and pipeline gas imports in the short-to-medium term despite efforts to boost its domestic gas output Mexico will struggle to reduce its dependence on US LNG and pipeline gas imports in the short-to-medium term despite efforts to boost its domestic gas output.
By Abhishek Kumar 22 October 2018 0 32949
Reforms designed to boost Mexico’s gas production will be key to President-elect Andres Manuel López Obrador’s policies. (PA)

Mexico’s gas sector is set to see major changes under President-elect Andres Manuel López Obrador, but supply security will be high on the agenda for the new administration. It will be no mean feat for the country to become self-sufficient in gas production over the next decade, and the recent free-trade agreement between the United States, Mexico and Canada will make the task even more difficult. Mexico is also planning to start exporting LNG even before attaining self-sufficiency, which in itself could be politically sensitive.

There...