Mexico Energy Report

Mexico Energy Report

Since its launch in 2015, the ICIS Mexico Energy Report (MER) has become the leading English language information source for Mexico’s emerging energy market. The report provides news, commentary, analysis, data and prices for the Mexican power and gas markets, which have become the most exciting domestic energy markets in the Americas.

In 2018, the report will transition from a fortnightly to a weekly publication, providing even more in depth coverage of the latest regulatory, project and market updates for this rapidly changing market, as well as the latest pricing information as reported by market participants.

With these enhancements, the report is set to become even more essential for companies currently active or looking to engage with the energy trading opportunities emerging from Mexico and across the Southern US.

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The MER provides:

  • Weekly updates starting January 1, 2018 – with market alerts between reports.
  • Proprietary and independent power and natural gas prices.
  • Regionally targeted price hubs that support the Mexican government’s country plans.
  • Insightful editorial content - bridging the gap between regulators and the market.
  • AOE – Ask Our Experts; our editorial staff are always available.
  • ICIS Dashboard – our secure web portal that includes prebuilt and customisable workspaces and historical reports and data.

The MER enables you to:

  • Gain an understanding of the latest pricing fundamentals for Mexico’s gas and power markets.
  • Make decisions about potential future trading positions.
  • Analyse the potential impacts of Mexico’s evolving energy market, and the opportunities therein, for your business.
  • Identify existing and prospective trading partners.
  • Stay updated on key legislative issues and infrastructure projects.

About the Editors

James Fowler

James Fowler has led ICIS coverage of Latin American energy markets since 2012. He has more than nine years’ experience covering Latin American energy matters for a range of different publications, including Business News Americas and the Economist Intelligence Unit.

Since 2015, he has focused primarily on Mexico, first as the editor of the ICIS Mexico Energy Report, which remains the flagship English language report to focus exclusively on Mexico’s natural gas and power markets. The role allowed him to be involved in the Mexican energy reforms since inception by covering the design of both the gas and power markets. Through the report, he was also able to publish the first OTC pricing indications for the power and clean energy certificate markets.

In his new role as Senior Energy Analyst in the Americas, his focus is on developing in-depth information and analysis products for Mexico and the wider Latin America region.

Claudia Espinosa

Claudia Espinosa is the editor of the ICIS Mexico Energy Report. She joined ICIS in 2017 and has covered Mexico and the Americas. Previously, Claudia consulted on Latin American political and economic issues for organizations in the US and Mexico. She holds a bachelor of arts degree and a master’s degree in international affairs focused on Latin American politics and business management.

Recent Mexico Market Updates

Pemex unveils VPM increases

  • The Venta de Primera Mano (VPM) contract price, which stipulates the maximum price Pemex can charge for a natural gas molecule sold within the national Sistrangas pipeline system, has increased for 2018.
  • The biggest increase was levied on the LNG balancing charge, which is applied to all customers of state utility CFE to cover the cost of LNG imports undertaken to substitute for declining domestic production. This price has risen to Mexican pesos (Ps) 3.33 per GigaJoule (GJ) for January from Ps2.34/GJ in December.
  • The price difference between gas sold in the Gulf zone of the Sistrangas and the southern transport zone has also increased from a 2017 average of Ps5.25/GJ to Ps5.60/GJ.

Mexico’s SENER publishes latest gas outlook

  • Mexico’s energy ministry (SENER) has released its latest 15-year gas market outlook for 2017-2031.
  • In 2020, demand is expected to be around 9.3 billion cubic feet (bcf)/day, which would represent a 16% increase from 2017. This year the country is anticipated to need around 8.3bcf/day, up 4% from 2017.
  • The increases are linked to the expansion of gas infrastructure and the start-up of various power plants.
  • Electricity generation is the biggest consumer of natural gas, and in 2018, it is set to represent 55% of demand versus 19% required by the industrial sector.

New distribution networks for southeast

  • Gas Natural Mexico (GNM) obtained two natural gas distribution permits for key areas of the Yucatan in late December 2017.
  • Mexico’s energy regulator CRE granted the permits allowing the company to distribute gas to Merida and Campeche.
  • Neither area currently has sufficient natural gas supply, and power plants must instead use more expensive fuels. Electricity rates for the Yucatan are among the highest in the nation as a result.

New pipeline delay reported

  • A spokesperson for Howard Energy said flows on the 600 million cubic feet (mcf) per day Nueva Era pipeline linking the Webb county gas hub in south Texas to Monterrey are not due to begin until the third quarter of 2018.
  • Flows had initially been expected during the fourth quarter of 2017, a date that was later pushed back to January 2018.
  • Kinder Morgan announced plans to add nearly 380mcf/day in export capacity in the Tennessee pipeline system (TPL) at two separate interconnects to Mexico.

Mexico energy webinars

The rapid changes that Mexico’s power and gas markets have undergone, as well as the emerging price fundamentals behind each one, have been explored and explained by MER Editor James Fowler through a series of webinars, which can be downloaded here:

Hear from our experts

Our Mexico energy experts are regularly sharing their market knowledge on public platforms. See the list of our latest speaking engagements and media partners here: