Mirage Energy Corp (MRGE)

[Macod]

Mexico needs to expand the natural gas network to capitalize on nearshoring

Nearshoring is encouraging the arrival of new projects and investments in the country, however, in order to better capitalize on it and allow these benefits to reach lagging communities, mainly in the southeast of the country, the expansion of the gas pipeline network is necessary. in order to facilitate access to this fuel.

In a document it mentions that even though the length of the gas pipeline network increased by more than 50% between 2011 and 2022 , the natural gas transportation infrastructure is still insufficient to guarantee supply in regions such as the south-southeast of the country.

This situation is one of the factors contributing to the industrial deficit and low competitiveness in the region. According to the analysis, the supply of natural gas in Mexico is greater than eight billion cubic feet per day, of which two thousand 203 million come from the production fields in Mexico, either by Petróleos Mexicanos (Pemex) or private oil companies

Therefore, almost six billion cubic feet per day are imported, that is, Mexico is dependent on gas supplies from abroad, mainly from the United States, which is why there are currently 32 gas entry points on the northern border and in the east of the country.

Due to this, 48.1% of the demand for natural gas in Mexico is concentrated in border entities in the north of the country, such as Baja California, Chihuahua, Coahuila, Nuevo León, Sonora and Tamaulipas, so these could be the entities of greater benefit from nearshoring .

Mexico has the potential to be one of the main beneficiaries of the relocation of global value chains. However, to take advantage of this opportunity, the country requires competitive energy infrastructure. Despite the fact that between 2011 and 2022 the length of the gas pipeline network increased by more than 50%, the natural gas transportation infrastructure is still insufficient to guarantee supply in certain regions of the country such as the south-southeast, which contributes, in part, to the industrial deficit and the low competitiveness of the region”.

https://www.dineroenimagen.com/economia/mexico-necesita-ampliar-la-red-de-gas-natural-para-capitalizar-nearshoring/155603