March 13, 2017

Mexico's CENAGAS Awards 29 Percent of Import Capacity for NG Pipeline from South Texas

Holland & Knight Alert
Carlos Ochoa | Alberto Esenaro

Mexico's 2013 Energy Constitutional Reform opened oil and gas sectors to private direct investment and operation. Under that reform, the National Center for Natural Gas Control (CENAGAS) was created as a state-run natural gas (NG) independent pipeline operator to manage the National Integrated System for Transport and Storage of Natural Gas, or Sistema de Transporte y Almacenamiento Nacional Integrado de Gas Natural (SISTRANGAS), and as transporter of its NG ducts.

SISTRANGAS is formed by the National System of Ducts (Sistema Nacional de Gasoductos) formerly owned by Petróleos Mexicanos (PEMEX), Gasoducto de Tamaulipas, Gasoducto Zacatecas, Gasoducto del Bajío, Gas Natural del Noroeste, Ramones I, Ramones II and Ramones Sur. The importance of having an independent operator is that all users may have fair open access to its capacity, which includes ducts with a combined length of 6,200 miles throughout Mexico.

CENAGAS performed its inaugural annual auction on Feb. 17, 2017, to award capacity on four points of the NET Mexico Pipeline from South Texas: EFM-Nueces, Southcross-Nueces, ETP-Delmita and DCP-GulfPlais.

As a result of the auction, CENAGAS awarded 29.2 percent of capacity to BP Energía México S. de R.L. de C.V., Fábrica de Envases de Vidrio del Potosí S.A. de C.V. and Industria del Álcali S.A. de C.V. The companies may also bid for capacity in the SISTRANGAS open season, which is still in course.

The auction was consistent to the gas release program that PEMEX is carrying out to open the NG market.

Holland & Knight's energy law attorneys have extensive experience in the hydrocarbons sector that includes a variety of projects in the natural gas industry. For more information, contact Holland & Knight's Mexico City office.


   

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.


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