• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 5 hours Energy Armageddon
  • 23 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 8 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 5 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 5 days The Federal Reserve and Money...Aspects which are not widely known
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days Goldman Betting on Cryptocurrencies
  • 9 days Сryptocurrency predictions
  • 14 days Putin and Xi Bet on the Global South

Breaking News:

Oil Prices Jump On Major Crude Draw

Oil & Gas 360

Oil & Gas 360

From our headquarters in Denver, Colorado, Oil & Gas 360® writes in-depth daily coverage of the North American and global oil and gas industry for…

More Info

Premium Content

The Next Step In Mexico’s Oil & Gas Privatization Push

Mexico’s Energy Regulatory Commission (CRE) released its first monthly price report on August 18, 2017.

As part of its ongoing series of energy reforms that reduce government market controls, the Mexican government converted to a liberalized natural gas market on July 1, 2017. Along with releasing the price index report, Mexico’s pipeline system operator (CENAGAS) launched its natural gas capacity reservation system with electronic bulletin boards for posting natural gas flows.

The price index system captures data on day-ahead spot sales in the natural gas market. For each transaction, CRE requires that marketers report the volume, price per gigajoule (GJ), storage and transportation costs, and several other variables. For now, CRE will compile the information submitted for each day and publish non-proprietary information in a monthly public report on its website within 15 business days after the end of each month. Price reports and greater transparency will be instrumental in establishing regional price indices at market hubs.

Mexico’s national energy ministry (SENER) has identified four potential pricing hubs located at the convergence of natural gas pipelines where most trading is likely to occur: Los Ramones (near the industry-intense city of Monterrey), Encino (in the northern state of Chihuahua), Bajío (near Mexico City), and Cactus (in the southern state of Chiapas).

Market hubs provide a means for balancing supply and demand through the transparent reporting of market prices.  The CRE took its initial step toward creating a competitive market and more price transparency on June 16, 2017, when it removed the price cap that PEMEX could charge for natural gas. Related: Kyrgyzstan Unveils Revamped Transnational Gas Pipeline

Eliminating the price cap allows economic agents other than PEMEX to offer supply options and for natural gas to be sold in Mexico on a competitive-market basis. This shift has also led to increasing Mexican production of natural gas.

Since the elimination of the price cap, Mexico has held three rounds of upstream auctions for oil and natural gas exploration in June and July 2017, selling 79 percent of available auction blocks. Mexico plans to hold two more auctions in early 2018.

Mexico has opened its upstream development opportunities to private companies with success in the early stages, as outlined in a previous article.

By Oil and Gas 360

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News