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

Holland & Knight LLP
Contact

Holland & Knight LLP

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.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Holland & Knight LLP | Attorney Advertising

Written by:

Holland & Knight LLP
Contact
more
less

Holland & Knight LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide