Mexico should take advantage of the golden age of natural gas
With suitable policies and actions, Mexico now has a great opportunity to place value on the vast natural gas resources it possesses, both in conventional natural gas fields, whether they are associated with oil or not, and in shale gas reserves. This was put forward at the seminar “International Natural Gas in Mexico: an energy of the future”, organised by the Gas Natural Fenosa Foundation in partnership with the Governance and Public Policy School at the Monterrey Institute of Technology and Higher Education.
Manuel Beguer i Mayor, International Projects Coordinator for the Gas Natural Fenosa Foundation, stated that one of the Foundation’s main tasks is to identify the problems facing every country that GNF operates in and to find solutions for each particular situation.
“The Foundation tries to have an impact on the problems identified in each country and select the projects accordingly. An example is this seminar which discusses natural gas and its impact on social, economic and environmental development,” said Beguer.
At the opening session, it was revealed that Mexico was experiencing a golden era of natural gas because it currently has the lowest prices in the world and it needs to capitalise on this for the future development of the country.
It was also noted that the 2013-2027 National Energy Strategy, a document of strategic planning that the President, Enrique Peña Nieto, presented to the Senate, forecasts continuity and certainty in taking advantage of the benefits that an energy source such as natural gas represents today.
Ángel Larraga, Country Manager at Gas Natural Fenosa, highlighted that taking advantage of the natural gas situation in Mexico is a challenge for the country’s production sector, the federal government and the business and industrial leaders. All of these areas recognise this fuel as a clean energy source of the future which will create great opportunities for growth, development and efficiency in the Mexican economy.
The seminar provides a chance to address matters relating to the market opportunities that arise from their privileged natural gas situation, which has resulted from the exploitation of non-conventional gas or shale gas. It was also raised that this phenomenon has multiplied reserves, has diversified the geography and has lowered the global natural gas price, therefore, separating it from the international oil prices for the first time, and this is an opportunity that must be considered.
With regards to the current regulations, it is important to develop a model that provides the State with the flexibility to explore and exploit shale gas, whether with public capital or participation from the private sector, which already has the necessary technology to be able to carry out this activity.
I was also put forward that the participation of all levels of government, and even political figures, is essential for the process of “demystifying” natural gas. It is also important that the population become familiarised with the infrastructure that is already benefiting communities and sectors in cities where it is transported or distributed.
At the public regulation table, it was suggested that to reinforce the gas transportation infrastructure in Mexico, the regulatory framework must offer the return conditions that investors require to operate, maintain and generate income. Efficiency must be a priority for the license holders to prevent this return conditions from driving up energy prices.
With regards to Vehicular Natural Gas, it was noted that the private sector that participates in natural gas transport and distribution is prepared to take advantage of the opportunities arising from the federal programme promoting this hydrocarbon.
The seminar concluded that the coming years present the best opportunity to strengthen the domestic market. Therefore, by creating a robust natural gas network, new distribution areas will be developed, CFE will be encouraged to install more combined cycle power plants and private projects for self-consumption, as well as other applications of this energy such as vehicular natural gas or climate control, will increase.
The seminar was attended by over 300 people and was connected with Monterrey (Nuevo León) and ITESM Campus León (Guanajuato) Graduate Schools in Public Administration through the TEC Virtual University in Monterrey.
MEXICO CITY (MEXICO), 05 MAR 2013
Communication
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