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noviembre 20, 2019
English Rosanety Barrios

Natural Gas: The Achilles heel of the Mexican energy system

By: Rosanety Barrios

Natural gas is strategic for the development of Mexico. It is the fuel necessary for the operation of the existing combined cycle generation plants in our country, which allow the intermittent operation of renewable generation and the replacement of fuel oil and diesel, which are 4 and 12 times more expensive than natural gas and double CO2 emissions to the atmosphere.

These same price and emission advantages have caused industry to be the main demander in the next 20 years, according to the International Energy Agency.

Our country’s total consumption has been around eight billion cubic feet a day since 2015. This stagnation in demand is the result of the fall in national production and insufficient transport infrastructure for imports, which forced to restrict the consumption of state companies and national industry. To solve this problem, gas pipelines were built and are now ready to operate.

The supply of gas by pipeline will mitigate the shortage we face today and will support the expected development of our country, while national production recovers. In a future occasion, we will talk about the resolutions necessary for Mexico to take advantage of its natural gas reserves.

Rosanety Barrios has 35 years of professional experience; she dedicated the first fifteen to the analysis of the Mexican stock market. Since 2000, she has participated in the energy sector, first in the Energy Regulatory Commission, and later in the Energy Secretariat, from which she coordinated the energy policy for the development of the natural gas, liquefied petroleum gas and petroleum products markets. Since December 2019, she is an independent professional; she has a degree in finance, with a master’s degree in finance and in economic regulation of network industries.

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