The share of imports in Mexican natural gas consumption reached a record of 72% last year, according to the latest data by hydrocarbons commission CNH. The trend has consolidated as national oil and gas giant Pemex’s production has dwindled over the past decade. According to the regulator, 4.7Bf3 (billion cubic feet) of natural gas was imported on average by Pemex every day in 2021, while an additional 713Mf3/d was being imported by other players. The state-owned player and private companies are producing 2.5Bf3/d. However, most of this output is consumed by the oil and gas sector, so Pemex can offer the wider market only 835Mf3/d, CNH said. Mexico could see a major rise in costs in its natural gas supply chain this year if an upward price trend continues in US Henry Hub distribution prices.
Last year, the country imported about 5.9Bf3/d from the US via pipeline, more than any previous year. Those exports were made at the record average price of US$5.41/MMBTU (million British thermal units). This year, Henry Hub prices have trended above US$6.50/MMBTU, with some futures contracts breaching US$7/MMBTU. As of end-March, private players invested US$112mn in E&P activities in Mexico, according to the latest data by CNH. The figure is significantly lower than the US$468mn CNH had reported during the same period in 2021. Total investments by private players in Mexico’s E&P activities have reached US$9.3bn, CNH said.