Cenagas to take over Pemex pipeline assets in February

Wednesday, September 10, 2014

Cenagas, a new federal body being created in Mexico to run and plan the natural gas pipeline system, will begin operating in February, according to Jorge de la Huerta Moreno, the subdirector of gas for Pemex Gas and Petrochemicals.

"Pemex will transer its 9,000km of pipeline assets to Cenagas in February," de la Huerta told BNamericas.

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Natural gas demand in Mexico is expected to rise to 8Bf3/d (227Mm3/d) from 5.7Bf3/d in 2018, and 10.4Bf3/d by 2025, and is a key part of the nation's energy reform.

"Part of the reason Pemex is transferring its assets to Cenagas is to be transparant. Cenagas will grant access of the pipelines to private companies," de la Huerta said at the 2nd BNamericas Latin America Oil & Gas Summit in Houston, Texas.

"Gas demand has doubled in 10 years, but the pipelines haven't. Part of the changes in the reform means developing a system that grows organically and won't affect end-users based on prices coming from different pipelines."

De la Huerta also highlighted the development of natural gas storage facilites as a "huge opportunity" for private companies in Mexico as demand surges.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.