Natural gas has been the most consumed fuel in Mexico since 2014. Its share in the energy basket exceeds 48%, it is still growing and, for two decades, it has been the energy sector with the greatest dynamism and has outpaced the growth of electricity demand and the economy.

As production has failed to keep up with demand, the gap has had to be closed with imports that today represent 70% of consumption and up to 93%, if the dry gas consumed by the oil industry is excluded.

Mexico and the United States: a fruitful alliance

Mexico is the main destination for exports of gas produced in the United States. Shipments to Mexico represent between 6.5% and 7.5% of the total produced in that country and come mainly from Texas. The vast majority is delivered by gas pipeline.

During the pandemic, the flow of imports did not stop and reached a record level of 7.4 billion cubic feet in June 2021. It is expected that Mexico will continue to be the most important market for the United States because it is the one with the lowest cost and the highest profits.

However, the growing dependence on imported gas from the United States has caused concern among analysts and official circles about the risks and consequences of a price shock or supply interruption. These concerns have not been translated into strong government measures to reduce dependence.

The great challenge

Given this, it is a governmental aspiration to establish a different energy model, where the energy transition is not limited to replacing fuels, but to changing the way we produce, consume, finance, collect taxes and distribute benefits.

It is conceptualized as a long and complex task that does not allow a segmented vision, where the issue of natural gas is intertwined with that of other energies and it is only possible to propose a comprehensive solution.

The great challenge is the development of the energy sector within the framework of economic development, considering that energy is a matter of national security. Hence the necessary presence of the State and the conditionality over the subjects authorized to carry out the activities that make up the supply chains.

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