Mexico’s Centro Nacional de Control del Gas Natural (Cenagas), operator of the Sistrangas natural gas pipeline network, is offering 657,405.773 GJ, or 631 MMcf/d, of firm natural gas transport capacity to interested shippers through an open season.
Shippers can reserve capacity at 10 reception points throughout the country, spanning from the U.S.-Mexico border to the Tehuantepec Isthmus in southeastern Mexico. The open season lasts until Aug. 30.
Four of the 10 reception points are considered import points for natural gas sourced from the United States.
These points include the Ramones system at the border with South Texas, as well as the El Sauz, Gaza and El Castillo points in central Mexico, which receive gas from Esentia’s Waha-to-Guadalajara (Wahalajara) pipeline system. Wahalajara transports gas from the Permian Basin to the heart of Mexico.
U.S. pipeline imports have accounted for 6.26 Bcf/d, or 72%, of Mexico’s total gas supply this year through May 29, up 550 MMcf/d from the same period last year, according to Wood Mackenzie data. Summer is typically Mexico’s peak demand season for natural gas.
The open season is the third and largest one to take place under the government of President Andrés Manuel López Obrador, aka AMLO.
Cenagas said it would evaluate submissions for firm capacity from July 29 to Aug. 23. Additionally, the state-run operator said it may assign capacity “in a preferential manner” to shippers whose principal activity is power generation or industrial transformation of hydrocarbons, such as oil refining or petrochemicals production.
Preferential treatment also may be given to shippers who have, or plan to have secured pipeline capacity upstream from the reception point(s) where they are seeking new capacity.
Interested parties must create an account on the Cenagas electronic bulletin board. Information in Spanish on the open season can be found here.
The previous open season saw Cenagas award nearly all of the 564 MMcf/d on offer. Winners included Energía San Luis de La Paz SA de CV, a power plant in Guanajuato state, as well as petrochemicals giant Braskem Idesa SAPI.
Cenagas has conducted a total of four open seasons since its inception in 2014 under the previous government.
The open season coincides with Cenagas’ latest Consulta Pública, or public consultation, an annual process to gauge the current and potential natural gas demand of large consumers. The consultation is a strategic planning instrument to quantify the natural gas transport and storage infrastructure projects needed by the market, according to officials.
Projects deemed viable would be considered for Cenagas’ 2025-2029 Sistrangas expansion plan, Cenagas said.
Officials noted that the Consulta Pública is not an open season, and does not result in binding commitments for any of the parties involved. Interested parties can participate in the Consulta Pública until June 21. More information can be found here in Spanish.
