ICIS has reported that Mexico is emerging as a key new marketplace for US natural gas, as government backed reforms open up the country’s energy sector to foreign investment for the first time in over 50 years. ICIS has said this in a new report.
Mexico could import up to 13% of current daily US production by the end of the decade, as pipeline projects currently under construction or planned over the next five years will give Mexico up to 10 billion ft3/d in natural gas import capacity. This gas will be used to supply Mexico’s rising industrial demand as well as a fleet of new gas fired power plants which form a key part of the 40GW in new generation capacity Mexican authorities are seeking to develop through to 2025, almost doubling existing capacity.
James Fowler, Editor of the ‘Mexico Energy Report’ commented, “the Mexican energy market is set to become the most dynamic for energy investment in the Americas, providing an exciting new opportunity for gas and power companies from 2016 onwards. International companies are expected to be at the forefront of the market’s expansion, as up to US$100 billion in foreign investment is sought through the next five years to cover Mexico’s soaring gas and power demand.”
Private and international generators are expected to play an increasingly prominent role in both the gas and powers sectors, which will open up from next year. New wholesale gas and power markets underpinned by private companies are expected to emerge thanks to open access and unbundling legislation currently being implemented.
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/07052015/mexico-energy-expansion/