MoneyMike1
1月前
Good news: the Brasil field was directly mentioned by name by CENAGAS as one of the depleted-field storage options.
Bad news / caution: this does not mean immediate development. The director also emphasized that they still need to analyze the financial viability of making such a large investment, and mentioned LNG in strategic zones as another possible way to address operational pipeline imbalances.
The next step is structure - funding, tariffs, timing, and who participates.
Excerpt from today's press conference:
"In another question, also on the topic: we have been seeing in Glass Dome that there is little natural gas storage capacity.
What is being invested to increase storage capacity?
If a contingency arises, we have 2 to 4 days of storage capacity.
So, what's being invested in this storage?
PRESIDENT OF MEXICO, CLAUDIA SHEINBAUM PARDO: —Do you want it, Cuitláhuac?—.
DIRECTOR GENERAL OF THE NATIONAL CENTER FOR NATURAL GAS CONTROL (CENAGAS), CUITLÁHUAC GARCÍA JIMÉNEZ: Well, within the plans for several years, it is considered to analyze storage options in the country.
There are two types of storage that are of interest to us:
The one that can guarantee natural gas to meet the demands of CFE.
And one that is to the demands that Cenagas has, which is operational.
Among the demands to satisfy CFE's needs, two options are being considered: the depleted fields of the oil deposits: there is one in the north called "Brasil" and another in the south of the country, the "JAF".
There are also two options in salt caves: one in Chihuahua and another also in the south of the country, in Veracruz.
In our case, we have analyzed one of the projects we believe to be most viable, in conjunction with the Mexican Petroleum Institute, which is the JAF project. There we are talking about 10 billion cubic feet that could be stored and developed.
In the case of the Brasil field, located in Tamaulipas, there is a greater capacity; it can store 31 billion cubic feet. That would be roughly three times what we currently have available for national consumption. So, it's quite a lot.
Now, the question is to financially analyze the advisability of the investment versus its potential use. The critical situations we've experienced have only occurred once every five years. Therefore, its use would be similar, once every five years, if it were to happen at all.
So, yes, the amount of such a large investment for a one-time use would have to be considered.
We are thinking of going towards the operational areas that could guarantee some imbalance in the gas pipelines of this gas.
That is why we are proposing to use liquefied natural gas in some strategic areas adjacent to our gas pipelines, to the National Gas Pipeline System, to prevent any critical situation.
I don't know if that will solve the problem.
QUESTION: Yes, thank you very much."
https://www.gob.mx/presidencia/es/articulos/version-estenografica-conferencia-de-prensa-de-la-presidenta-claudia-sheinbaum-pardo-del-07-de-mayo-de-2026?idiom=es
MoneyMike1
2月前
Very interesting news. Cenagas President Cuitláhuac García said that there will be four projects for natural gas storage. One is Jaf, located in Veracruz. One will be in Chihuahua, another in Tamaulipas, and another also in Veracruz.Two are in salt caverns and two are in depleted oil fields. Wonder what the project in Tamaulipas is 🤔 Looking forward to Claudia Sheinbaum's morning press conference this Wednesday when more information will be given.
Cenagas President Cuitláhuac García emphasized that the decision to consult with specialists on the issue of fracking is a step forward / Photo illustration: Natalia Montiel
Alberto Martinez Escamilla
Cenagas prepares 4 projects to increase gas storage
April 15, 2026
Cenagas CEO Cuitláhuac García said that President Claudia Sheinbaum's decision to consult with experts on the implementation of fracking is an important step and they will be monitoring the decision.
The general director of the National Natural Gas Center (Cenagas) , Cuitláhuac García Jiménez , said that despite the conflict developing in the Middle East between Iran and the United States, the plan to reach 10 days of natural gas storage for Mexico remains in place, and they are preparing a series of projects.
When approached by journalists during the Energy and Innovation Fair for Transformation and Well-being, the former governor of Veracruz clarified that there is still no set date to meet this goal , as it depends on the projects being finalized.
Photo art: Natalia Montiel
The official noted that as part of the Five-Year Plan , planned from 2025 to 2029, Cenagas is analyzing four options for storing the hydrocarbon, of which two correspond to salt caverns, and the other two to depleted oil fields.
"We are interested in having this storage facility operational. Furthermore, the gas injection and extraction times from these storage facilities are still too slow for us," García Jiménez pointed out.
He added that they already have a signed agreement with the Mexican Petroleum Institute (IMP), which conducted a study on a depleted crude oil field, and that they will soon hold a meeting to address technical issues.
The official did not provide further details , but told the media that he will participate in President Claudia Sheinbaum's morning press conference next Wednesday, April 22, to provide more information.
Dependence on imported natural gas
Mexico has a storage capacity of only 2.5 days for national natural gas consumption, which generates a strong dependence on the resource that arrives from Texas through pipelines, leaving the country vulnerable to any possible supply failure.
The head of Cenagas pointed out that, on average, around 75% of the natural gas consumed in Mexico is imported , and only 25% is domestically produced. He added that 80% of imported natural gas comes from hydraulic fracturing (fracking), and it is within this context that the country must decide what to do regarding fracking.
"The important step the president is taking is to analyze it with the specialists. We will wait for the result of that," he commented.
García Jiménez mentioned that natural gas is a transition fuel towards clean energy, and assured that the country's growth requires this type of energy source.
https://elceo.com/politica/cenagas-alista-4-proyectos-para-elevar-almacenamiento-de-gas/
MoneyMike1
2月前
There has been much recent discussion about fracking. It’s important to keep in mind that fracking and storage go hand in hand. As infrastructure and gas volumes increase, so does the need for balancing and reliability.
Without infrastructure for gas storage and water generation, fracking will be nothing but a pipe dream.
The discussion surrounding the development of unconventional gas shifts to the dependence on a surface support network that has not yet been built.
Fri, April 17, 2026, 11:00 AM
Diana Zavala
Mexico has natural gas underground, but lacks the infrastructure to sustain its exploitation. The discussion surrounding hydraulic fracturing has shifted from focusing solely on the extraction technique to what happens afterward: how to move, store, and sustain the resource on the surface.
During a session of the College of Civil Engineers of Mexico (CICM) , specialists agreed that the viability of fracking depends not only on the subsoil, but also on a parallel infrastructure network that does not exist today or is limited.
The country faces a structural dependency. Currently, about 75% of its natural gas is imported from the United States, which exposes it to supply disruptions. This is compounded by limited storage capacity. “We only have enough gas storage for three days,” noted Rubén Chávez Guillén, Coordinator of the Groundwater Subcommittee of the CICM Water Committee .
Gas needs somewhere to be stored
The first bottleneck is storage . Without the capacity to store the extracted gas , production does not translate into energy security.
“If we don’t complement it with storage capabilities, we will remain very vulnerable,” the specialist warned.
The lack of operational reserves limits the energy system's ability to respond to disruptions, even if the country manages to increase its domestic production.
The United States is the world's producer of natural gas with the cheapest prices. (ttsimaging/Getty Images/iStockphoto)
Water and energy, two infrastructures that advance together
The second component is water . Fracking requires between 14,000 and 30,000 cubic meters per well during drilling, a consumption that occurs only once in its lifetime.
Although the volume may seem high, specialists emphasized the importance of contextualizing it in relation to the total use of the resource. “Consumption occurs only once during the life of the well,” explained the former president of the Mexican Geohydrological Association (AGM).
Beyond volume, the challenge lies in the origin and management of water. Water infrastructure is not limited to extraction, but also includes transport, treatment, and reuse.
Ascensión Medina Nieves, president of the CICM's Board of Honor, stated that both systems must advance in a coordinated manner. "Investment in gas extraction infrastructure and investment in water infrastructure are equally essential and must progress simultaneously," she noted.
Intensive water use occurs during the drilling stage, which lasts between 15 and 20 days. (MARCO ANTONIO MARTINEZ/AFP)
The options being considered include the use of wastewater, brackish water, or even interregional water transfers, which would involve additional pipeline and treatment works.
Transportation, roads and surface operations
Before gas can be extracted, the infrastructure begins on land. The operation requires roads, heavy machinery traffic, and logistics for transporting materials and fluids.
On the surface, gas and water management involves facilities for separation, temporary storage, and recirculation. Infrastructure is also required for handling return fluids, which may contain high salinity.
The process doesn't end at the well. The associated infrastructure includes networks for transporting the gas, as well as monitoring and operational control systems.
Monitoring and regulation, part of the infrastructure
The conference also identified monitoring as part of the necessary infrastructure. It's not just about physical infrastructure, but also about information systems.
Among the elements mentioned are seismic monitoring, aquifer monitoring, and transparency of operational data. “Regulation without oversight is a dead letter.”
This involves investment in technical capabilities, measuring equipment, and specialized personnel to supervise each stage of the project.
A fracking network that doesn't exist
The CICM's diagnosis indicates that fracking is not an isolated project, but a system that requires multiple layers of infrastructure: water, energy, logistics and regulatory.
Without storage, gas cannot be utilized. Without water, it cannot be extracted. Without monitoring, it cannot be controlled.
The discussion, the specialists argued, is not only about whether fracking is viable, but whether the country can build the infrastructure that makes it operational as a whole.
https://obras.expansion.mx/infraestructura/2026/04/17/infraestructura-necesaria-para-fracking
MoneyMike1
2月前
Absolutely!
Mexico depends on gas from Texas, and the war in the Middle East could raise prices by up to 25%.
March 5, 2026 | 11:36 | Eduardo Ruiz | Uno TV
The war in the Middle East has driven up the price of natural gas worldwide, a scenario that could put pressure on Mexico, even though the country does not buy gas from that region. The impact will depend on how long the conflict lasts, since the Mexican market relies on supplies from the United States, primarily from the state of Texas.
Mexico depends on natural gas that it imports from Texas.
Experts explained that all the natural gas that Mexico imports comes from the United States, which puts the country in a vulnerable position in the face of any energy crisis in that market.
Rosanety Barrios, an independent consultant in energy regulation and policy, pointed out that the external supply is practically concentrated in a single source.
“All the gas that Mexico imports comes from Texas… There is no other country that supplies us with gas.”
Similarly, Miriam Grunstein, founder of Brilliant Energy Consulting, explained that Mexico imports large volumes daily.
“We import around 7.5 trillion cubic feet per day, so if there were an energy crisis in the United States due to the Strait of Hormuz being blocked, then that would have a direct impact on our markets.”
Gas demand in Mexico exceeds domestic production
Energy sector data shows that the daily national demand for natural gas is between 8.5 and 9 billion cubic feet.
However, domestic production does not cover that level of consumption. Petróleos Mexicanos (Pemex) produces between 3 and 4 billion cubic feet, that is, less than half of what the country needs.
Doraluz Sotelo, a partner at GMB Abogados, explained that this difference forces Mexico to depend on imports.
“The country needs between 8.5 and 9 billion cubic feet per day to meet its needs… the problem is that Pemex, as our largest producer, is only reaching less than half.”
What is natural gas used for in Mexico?
Natural gas is key to various economic activities in the country. Its main uses include:
- Electricity generation
- Industrial processes
- Pressure from Pemex oil fields
- Household consumption
According to Rosanety Barrios, the electricity sector is the largest consumer.
“For generating electricity, that is the most important user; the second most important is industrial consumption… the third most important user of natural gas in Mexico is Pemex.”
The United States supplies most of the gas consumed by Mexico.
Experts agreed that importing natural gas is cheaper than producing it in Mexico, which has increased energy dependence.
Doraluz Sotelo indicated that the United States supplies the vast majority of the fuel used by the country.
"The United States provides us with more than 70, 80, even up to 90%, depending on the data one consults."
Currently, the price of natural gas is around $3.50 to $4 per cubic meter, according to industry estimates.
Could the price of gas rise in Mexico?
Analysts warn that the risk is a repeat of a scenario similar to what happened after Russia's invasion of Ukraine, when the international energy market saw sharp price increases.
If the conflict in the Middle East causes countries in Europe or Asia to compete for US gas, costs could increase.
Miriam Grunstein explained that in that scenario fuel could become more expensive and cause shortages.
“There could be enormous competition and the United States could decide to export gas to those countries at a very high cost… then the molecule itself would become very expensive and there could be a situation of shortage and price increases for us.”
According to expert estimates, the increase could be between 20 and 25% if the situation worsens.
The government could intervene to prevent price increases for consumers
In the event of a possible increase, the Federal Government would have the option to intervene to prevent a greater impact on consumers.
Doraluz Sotelo explained that the authorities could authorize tariffs or negotiate with natural gas permit holders to reduce the impact on households.
“Yes, the Federal Government would be able to continue authorizing these rates and reach agreements with the natural gas permit holders themselves so that the impact on the consumer could be as minimal as possible.”
Lack of gas storage revives energy security debate
The current context has also revived the discussion about the lack of infrastructure to store natural gas in Mexico, an issue that specialists consider a matter of national security.
Rosanety Barrios warned that the absence of strategic reserves represents a risk.
“We don’t have storage in Mexico, that’s risky.”
The final impact will depend on how long the conflict in the Middle East lasts and how the international gas market evolves.
https://www.unotv.com/negocios/mexico-depende-del-gas-de-texas-y-la-guerra-en-medio-oriente-podria-subir-precios-hasta-25/
MoneyMike1
2月前
Mexico vulnerable in natural gas due to the closure of Hormuz
by Gabriel Becerra Dingler
March 10, 2026
The closure of the Hormuz dam exposes Mexico's energy fragility: we depend on imported gas, we have almost no storage capacity, and any external shock can trigger blackouts, increased industrial costs, and inflation.
In Mexico, we tend to react to global energy crises with "it's very far away." And yes, it's true that our crude oil and gas don't cross conflict zones daily. But this partial truth is dangerous because it gives us a false sense of security just when the world is entering a period of turbulence.
The closure of the Strait of Hormuz suddenly increases the price of two things: oil and liquefied natural gas (LNG). It doesn't even take a single ship bound for Mexico passing through for it to affect us; it's enough that Europe and Asia compete fiercely for every available molecule, driving up LNG prices and, consequently, increasing benchmark gas prices in North America.
That's where our problem begins. I've already said it a thousand times in this space.
More than 70% of the gas consumed in Mexico comes from the United States via pipeline. This gas fuels approximately 65% ??of the country's electricity generation and is the backbone of industries such as steel, cement, glass, chemicals, automotive, and food. When gas prices rise due to a global shock, CFE (the Federal Electricity Commission) pays more to generate electricity, companies pay more to produce, and the government must decide whether to absorb the impact through subsidies or allow it to be passed on to consumers through tariffs and final prices.
In a country with limited fiscal leeway, the answer almost never comes free.
The next link in the chain of vulnerability is even more serious: we practically have no gas storage capacity. Mexico has around 2.4 days of reserves in three LNG terminals (Altamira, Manzanillo, and Costa Azul), well below the official target of 5 days set by the Public Policy on Storage itself for 2026. On paper, we talk about energy security; in practice, we live hand to mouth.
What does that mean in a world where the Strait of Hormuz is under fire? That any shock—a cold wave in Texas, a pipeline failure, a war halfway around the world—can transform, in a matter of days, into critical alerts, cuts to large consumers, selective blackouts, and a wave of cost overruns that sweeps through the entire Mexican economy.
This is no exaggeration: we already saw it with the winter storms in the United States. We operate an electrical and industrial system that functions as if gas were a guaranteed continuous flow, but without a physical buffer or solid regulations that make investing in underground storage profitable.
The lesson the Strait of Hormuz offers Mexico isn't geopolitical, it's common sense. If you're going to base your electricity and industrial model on imported gas, you need strategic reserves. Not just pipelines, not just contracts, not just speeches. Without large-scale storage, every global crisis becomes an energy roulette where others pull the trigger… and the Mexican economy always pays the price.
Gabriel Becerra Dingler
Gabriel Becerra is an expert in the energy sector and strategic communications. He co-founded Oil & Gas Magazine and currently directs Industry & Energy Magazine. He has participated as a speaker in national and international forums, addressing the challenges of the Mexican energy sector.
https://energymagazine.mx/2026/03/mexico-vulnerable-en-gas-natural-por-cierre-de-ormuz/
MoneyMike1
2月前
“LOL! Mexico neither imports nor exports LNG.”
That’s not accurate. Mexico does import LNG via regasification terminals (Altamira, Manzanillo, Costa Azul). Those facilities only hold limited, short-term inventory (on the order of a couple days of supply) which is exactly why Mexico is pushing for underground storage.
And even if LNG weren’t involved, global shocks still matter.
When Europe and Asia pull more U.S. gas, it tightens supply and lifts North American benchmarks, LNG or not. Mexico, importing over 70% of its gas from the U.S. and holding only around 2 days of buffer, is directly exposed.
That’s why Cenagas is prioritizing storage.
“The Strait of Hormuz has ZERO impact on Mexico’s natgas supply”
That’s not how energy markets work.
Gabriel Becerra Dingler (Industry & Energy Magazine):
“The closure of the Strait of Hormuz suddenly increases the price of two things: oil and liquefied natural gas (LNG). It doesn’t take a single LNG shipment to Mexico for it to be affected. It’s enough that Europe and Asia compete for supply, driving up prices in North America.”
“Mexico has around 2.4 days of reserves… we operate without a physical buffer.”
“...any external shock can trigger blackouts, increased industrial costs, and inflation.”
Source: Mexico vulnerable in natural gas due to the closure of Hormuz
https://energymagazine.mx/2026/03/mexico-vulnerable-en-gas-natural-por-cierre-de-ormuz/
shajandr
3月前
LOL! Mexico neither imports nor exports LNG. It doesn't have a single facility to compress natgas to make LNG anywhere in Mexico. Mexico imports natgas from the USA via pipelines. The USA has excess natgas to sell - oodles of it. Therefore the Hormuz Strait has ZERO impact on the Mexican natgas supply and no natgas storage facility would have any effect on Mexico's import or export of natgas.
MRGE has nothing to do with natgas, oil wells, or Mexico. It was one of many, many investor scams that Royis and CMV have pulled since the 1960s - never once having a legit, profitable, sustainable business; ALL were total losses for their investor-victims.The winners were the grifters: ROYIS and CMW. Everytime. Every single time. For over 60 years running. Nott a single "deal" that made the investor-victims even one cent. All were total losses.
ROYIS and CMW are scamming grifters, nothing butt. Anyone who wasted a US Dollar in any of their public scams, such as ECCI, TIDE, GMEI, or MRGE, other than PowerUp/Curt Kramer, CMW's wife, or other toXXXic financiers or Friends/Kids of CMW, were/are chumps who failed to do even very basic DD on CMW and his long history of swindling the weak-minded/lazy.
Mebbe the Luginbills and Springs ought to give CMW a one-way ticket to Tehran so CMW can pitch his old, dusty slide deck to the mullahs. That would be the best use of munny the Luginbills and Springs ever made in this obvious scam wiff~OUTT a Shell Risk annunciator on its OTCMarkets.com webpage.
EXECUTIVE SUMMARY: (1) the Strait of Hormuz closure has no relevance to MRGE or to Mexico's natgas import/export or any natgas storage facilities that would be located in Mexico - nun, and (2) yer munny is G-O-N-E, GONE and it won't be coming back, hell it won't even send you a postcard. CMW din't even thank you for the munny you handed to him.
MoneyMike1
4月前
There is an urgent need to define the IP role in storage
02 MIN 30 SEC
Mario Lopez
Mexico City (February 2, 2026) - 5:00 AM
Mexico needs gas storage facilities, and although some projects are about to be put out to tender, there are still few details on how the private sector will participate. Credit: AP
The federal government must define the scheme for private sector participation in the construction of natural gas storage infrastructure, stated Alfredo Bejos Inclán, president of the Mexican Natural Gas Association.
"The new five-year plan for the Sistrangas system, which Cenagas will present shortly, seeks to develop 10-day storage infrastructure with four projects that include salt caverns and depleted fields. It is within this framework that private sector participation is situated.
"What we are seeking is formal clarification on how private participation will be carried out, whether through a public-private partnership, a strategic alliance, or joint ventures like those with Pemex, as there is significant interest in participating in these projects," the business leader stated.
He acknowledged that there are attractive projects for the industry, but clarity is needed regarding the nature of participation and the role the private sector will play in the energy transition.
"The fine-tuning is still needed, because there is undoubtedly interest from the industry. We want to support the government in developing more storage and transportation infrastructure.
We need to have pipelines in good condition to avoid major damage in the event of environmental emergencies like those we've seen. I'm referring to both private pipelines and those managed by Cenagas," he explained.
The five-year plan will include pipeline expansion projects in development hubs where the industry intends to participate, he added.
The president of AMGN said it is necessary to reduce the country's dependence on natural gas, especially that from the United States, which represents 70 percent of Mexico's consumption.
Currently, 70 percent of the gas used in the country is imported, mainly to meet the needs of the electricity sector, he said.
"We believe that the demand for natural gas will increase, but with the projects Pemex has in the pipeline, domestic production will grow. Therefore, we see that imports could remain at around 7.5 billion cubic feet per day."
"The price has been volatile in recent weeks, but we estimate that by year's end it will have increased slightly to around four dollars per million BTU," he explained.
Finally, he said that the review of the United States-Mexico-Canada Agreement (USMCA) will generate greater certainty for energy investments in the region.
https://www.reforma.com/urgen-definir-para-ip-rol-en-almacenamiento/ar3145349
MoneyMike1
5月前
Check out this panel on natural gas storage at the Tamaulipas International Energy Congress on November 25
Interesting excerpt from Fidel Juárez Toquero, Mexico country manager of Sproule ERCE:
TL;DR - He said he thinks Mexico is at 2 out of 10 in terms of a timeline for having natural gas storage. Doesn't sound encouraging, but it still seems to be in the works. Focus right now is on oil wells from what I understand.
31:41
Fidel. We mentioned Brasil and Jaf, right? These are two projects
31:47
that were approved, they are approved, let's say there is technical feasibility. Uh, uh, if we were to see it on a timeline, where one is the beginning and 10 is the end, where would we be? At one, two, five, six? How much longer would it take for us to be able to say, "We already have a Brasil project, a Jaf project storing gas in Mexico?"
32:16
Thank you. Well, that's a very good question, and this is going to...
This is my personal opinion.
32:22
I would rate it a two out of 10 because the first step is feasibility. Only
32:30
there are several pending issues, such as regulation, right? That is, there is no clear regulation to
32:38
promote this type of project. Another important issue is that a basic feasibility study was conducted. There is
32:46
a need to have an integrated subsurface and surface model
32:51
to model the operating conditions.
32:57
That is, it's possible, I'm not guaranteeing it, but it's possible that with that integrated model it turns out that it's not
33:04
viable to obtain what is being sought, right? Because these depleted reservoirs performed
33:11
under certain conditions in their production stage. If those conditions are affected later,
33:16
the behavior or performance may be completely different from what was seen in the primary stage, right?
33:21
So it is necessary to have that integrated subsurface and surface model. That model would feed into the economic evaluations,
33:29
and well, the project would have to be profitable for it to actually be developed, right?
33:35
And if we add to that the existence of clear regulation regarding who will be
33:40
the regulating entity. Here they mentioned that the regulation in the United States works. In Canada it's
33:46
something similar as well, where most of the activities involved in a project are
33:52
regulated by a single entity. When that happens, the regulation is more
33:57
efficient because there is internal communication, right? If the activities are regulated
34:03
by multiple institutions, that could further hinder the development, right? No
34:10
It's very aggressive here with the two, the 10, but
34:17
no, nothing, no. Then the reality is uncomfortable with what happens, but well, it's normal.
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