- Table of Contents
Mexico is situated in North America and is bordered to the north by the United States, to the west and south by the Pacific Ocean, to the southeast by Guatemala, Belize and the Caribbean Sea, and to the east by the Gulf of Mexico. Mexico has a total surface of 1,972,550 square kilometers (761,606 sq mi) and is inhabited by approximately 112.3 million people (2010 census) making it the eleventh most populous country in the world. It has the world's thirteenth largest economy by nominal GDP (ranked by World Bank) and eleventh largest in the world when measured by purchasing power parity (World Bank and International Monetary Fund ranking). Their economy is closely linked to those of the North American Free Trade Agreement (NAFTA), especially the US. Mexico is the third largest gas consumer in OECD North America after the United States and Canada. Mexico has a natural gas supply per capita of 0.458, lower than the average of OECD North America (1.202). With a relatively high rate of domestic production as compared to their consumption, Mexico imports the vast majority of its gas volumes from the US. [1], [2]
| Basic Gas Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Gas reserves (bcm) | .. | 373 | 359 | 339 | 349 |
| Gas production (mcm) | 42415 | 46629 | 47180 | 47994 | 48054 |
| Gas consumption (mcm) | 52621 | 57338 | 60294 | 60442 | 61604 |
| Gas imports (mcm) | 9982 | 11297 | 13864 | 12989 | 13604 |
| imports pipeline (mcm) | 9173 | 8719 | 10111 | 9359 | 9931 |
| imports LNG (mcm) | 809 | 2578 | 3753 | 3630 | 3673 |
| import dependency (%)* | 18.3% | 17.2% | 21.1% | 20.4% | 21.8% |
| Gas exports (mcm) | 348 | 1433 | 1112 | 687 | 199 |
| Natural gas supply per capita (toe) | 0.411 | 0.439 | 0.46 | 0.452 | 0.458 |
| Technically recoverable shale gas resources (bcm) | .. | .. | .. | 19285.92 | .. |
| Coal Bed Methane reserves (bcm)** | .. | .. | .. | .. | between 118.94 - 212.4*** |
| c = confidential; - = nill; ..= not available * Imports dependency of natural gas = (imports - exports) / consumption **Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program ***concentrated in the northern states of Coahuila and Sonora. Sources: Natural Gas Information © OECD/IEA, 2011, EIA Analysis & Projections, GMI/EPA Coal Mine Methane Country Profiles | |||||
| Basic Energy Facts | 2006 | 2007 | 2008 | 2009 | - |
|---|---|---|---|---|---|
| Total Energy Consumption (mtoe) | 175.1 | 176.29 | 181.09 | 174.64 | 169.83 |
| CO2 Emissions (Mt) | 431 | 437.92 | 408.3 | 399.67 | .. |
| CO2 intensity (tCO2/toe) | .. | 2.38 | 2.26 | 2.29 | .. |
| Energy per capita (kgoe/cap)* | 1.727 | 1.687 | 1.675 | .. | .. |
| CO2 per capita (kg/cap) | 4.02 | 4.14 | 3.83 | 3.72 | .. |
| c = confidential; - = nill; ..= not available *source data is conversed from btu to toe Sources: Natural Gas Information © OECD/IEA, 2011 & EIA International Energy Statistics | |||||
- 1. Natural Gas Information © OECD/IEA, 2011
- 2. EIA Analysis & Projections - World Shale Gas Resources 2011
- 3. Global Methane Initiative/U.S. Environmental Protection Agency - Coal Mine Methane Country Profiles 2010
- 4. EIA International Energy Statistics 2010-2011
This section explores total primary energy consumption, gas demand by sector for Mexico.
In 2010, Mexico’s total TPEC amounted to 169.83 mtoe, a 2.75% decrease as compared to 2009. Oil accounted for 92.76 mtoe while coal and gas accounted for 8.58 mtoe and respectively 49.56 mtoe. Other sectors accounted for 18.94 mtoe. [1]
In 2010 Mexico consumed a total of 61,604 mcm of natural gas, about 1.9% more as compared to the consumption in the previous year. In 2009, Mexico consumed a total of 60,442 mcm of natural gas, about 0.24% more than in 2008. Of its consumption in 2009, 29,466 mcm were used for transformation and 16,320 mcm for the energy sector while 10,239 mcm was consumed by the industry.
Transformation includes the generation of electricity, while the demand from the ‘Industry’ refers to gas used for such things like the chemical-, iron and steel- and machinery industry. The demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works. [1]
This section deals with gas reserves, exploration & production and gas imports.
The indigenous gas resources of Mexico are limited. It hosts approximately 0.18% of the world total reserves. The reserves-to-production ratio* for Mexico at the end of 2010 was 7.26 years, up from 7.06 years at the end of 2009. [1]
*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.
Mexico´s gas production is constantly growing. The amount of produced gas has almost doubled since 1990, reaching 48,054 mcm in 2010. This makes Mexico the 3rd larger gas producer in OECD North America. [1]
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010e | %Total 2010 |
|---|---|---|---|---|---|---|
| Norway | - | - | 92 | 88 | - | - |
| US | 9173 | 8719 | 10111 | 9359 | 9931 | 73% |
| Egypt | 281 | 1108 | 1177 | 454 | 83 | 0.6% |
| Algeria | - | 81 | - | - | - | 0% |
| Indonesia | - | - | - | - | 48 | 0.4% |
| Nigeria | 69 | 719 | 1110 | 2705 | 2063 | 15.2% |
| Qatar | 144 | - | 69 | 133 | 1170 | 8.6% |
| Trinidad & Tobago | 315 | 670 | 1305 | 87 | - | 0% |
| Yemen | - | - | - | 91 | 147 | 1.1% |
| Other | - | - | - | 72 | 162 | 1.2% |
| Total | 9982 | 11297 | 13864 | 12989 | 13604 | 100% |
| %Total Consumption | 19% | 19.7% | 23% | 21.5% | 22.1% | - |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
| By transport type (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010 | %Total 2010 |
|---|---|---|---|---|---|---|
| Pipeline imports | 9173 | 8719 | 10111 | 9359 | 9931 | 73% |
| LNG imports | 809 | 2578 | 3753 | 3630 | 3673 | 27% |
| Total | 9982 | 11297 | 13864 | 12989 | 13604 | 100% |
| c = confidential; - = nill; ..= not available Source: Natural Gas Information © OECD/IEA, 2011 | ||||||
Mexico’s gas imports account for approximately 22% of the total volumes of consumed gas. The majority of Mexico’s gas imports are being accomplished via pipeline, only 27% is imported via LNG. The gas pipeline imports originate from the US. Its share in Mexico’s gas imports slightly increased from 72% in 2009 to 73% in 2010, while Egypt saw its share decrease from 3% in 2009 to 0.6%. The share of Qatar in Mexico’s gas imports increased almost 9 times (from 133 mcm in 2009 to 1170 mm in 2010). The share of Yemen in Mexico’s gas import gas also grown by 62%. [1]
This section deals with the gas grid, LNG terminals and storage facilities.
Pipelines
The most important pipelines in Mexico are the following: Activo de Burgos (pipeline network), Burgos-Monterrey Pipeline, Cadereyta Pipeline, Guadalajara Pipeline (under construction), San Fernando Pipeline and Tamazunchale Pipeline . [1]
Gas Infrastructure Projects
To connect the Manzanillo LNG terminal to the grid, the Guadalajara pipeline is planned. Owned by Energía Occidente de México the Guadalajara pipeline will be 300 km long with an expected capacity of about 5 bcm/y. Currently it is under construction and is expected to be completed in 2011. , [ reference dbsource_38]
At the end of 2010 there are two operational LNG terminals in Mexico, namely Altamira, with a nominal capacity of 7.8 bcm3/y and Energia Costa Azul, with a nominal capacity of 10.33 bcm3/y. There are two terminals (Terminal GNL de Sonora and Manzanillo LNG terminal) under construction.[1], [2]
| Site | Storage | - | Regasification | - | Owner | Operator | TPA | Sources | Start-up | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| - | #Tanks | Storage cap* | #Vaporizers | Nom.cap** | - | - | - | - | - | - |
| Altamira | 2 | 300 | 5 | 7.8 | Terminal de LNG de Altamira (50% Shell, 25% Total, 25% Mitsui) | Terminal de LNG de Altamira | No | Nigeria, Egypt, Qatar, T&T | 2006 | E |
| Energia Costa Azul | 2 | 320 | 6 | 10.33 | Energia Costa Azul (100% Sempre LNG) | Energia Costa Azul | Yes | Indonesia, Qatar, T&T | 2008 | E |
| Manzanillo | 2 | 150 | .. | 3.8 | Terminal KMS de GNL | .. | .. | .. | .. | E |
| Sonora | .. | .. | .. | .. | .. | .. | .. | .. | .. | P |
| c = confidential; - = nill; ..= not available E = existing; U = under construction; P = proposed * capacity in m3 x1,000 in LNG **nominal capacity in bm3/y. Source: Global LNG Info 2012, GIIGNL 2010 | ||||||||||
- 1. Global LNG Info - World's LNG Liquefaction Plants and Regasification Terminals 2012
- 2. GIIGNL 2010
This section deals with the gas market regulation in upstream, the transmission grid and downstream.
This sector is partially privatized. Petroleum Company (PEMEX) is government owned and is licensed for production and first hand sales of gas on the wholesale market. Most transmission pipelines are owned and operated by Pemex. About 78% of demand in 2010 was met by domestic production. The remaining demand is met by imports mainly from the US. The remaining portion is imported from other regions via the LNG.[1] Tariffs are regulated by the CRE (Energy Regulatory Commission), except where competitive conditions exist. CRE established a maximum tariff but allows freely negotiated rates below this level to be agreed. [1]
This sector is partially privatized. The Mexican natural gas transmission grid is characterized by different unconnected pipelines which are operated by different TSOs under a TPA regime. PEMEX is running the main one which covers 18 Mexican states. There are 10 Interconnection gas pipelines which supplied the US with near 400 M/cf in 2007. [1] There are several local DSOs which operate the distribution pipelines under either regulated or negotiated TPA. CRE is regulating transmission, storage and distribution rates and the quality of the service. When distribution and transmission activities are integrated, corporate unbundling is required, though exemptions are possible under specified conditions. [1]
This sector is partially privatized. CRE controls DSOs, when DSOs are acting as a supplier in their licensed area as well as PEMEX’s first hand sales prices. The market is fully opened since 1995 with the end-user prices being determined by the market. [1]
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