ARTICLE
23 March 2017

Mexico's CENAGAS Awards 29 Percent Of Import Capacity For NG Pipeline From South Texas

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Mexico's 2013 Energy Constitutional Reform opened oil and gas sectors to private direct investment and operation.
Mexico Energy and Natural Resources
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Jose Antionio Prado and Carlos Ochoa are Partners and Alberto Esenaro Arteaga is an Associate in the Mexico City office.

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
23 March 2017

Mexico's CENAGAS Awards 29 Percent Of Import Capacity For NG Pipeline From South Texas

Mexico Energy and Natural Resources

Contributor

Holland & Knight is a global law firm with nearly 2,000 lawyers in offices throughout the world. Our attorneys provide representation in litigation, business, real estate, healthcare and governmental law. Interdisciplinary practice groups and industry-based teams provide clients with access to attorneys throughout the firm, regardless of location.
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