Mexico is into the third year of its big natural gas drive, having invested heavily in new pipelines from the US border to feed low-priced gas supplies to an expanding and energy-thirsty economy. Reforms introduced in August 2014 by the administration of President Peña Nieto encouraged foreign investment in energy production, liberalised gas pipelines, and intensified the Comisión Federal de Electricidad’s (CFE) reliance on gas to replace fuel oil. This year, recent successes in Mexican gas system operator CENAGAS’s open season for pipeline capacity suggest investors are confident in gas sector growth – and new infrastructure means Mexico will be able to rely on, and depend increasingly upon, supplies of relatively cheap US shale gas. But a gathering collection of risks, both political and technological, are emerging for Mexico’s dash for gas. Gas Matters examines the outlook and reviews opportunities and risks as Mexico’s burgeoning gas industry expands.
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