• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 10 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 mins Australian Voters Reject 'Climate Change' Politicians
  • 7 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 1 hour Global Warming Making The Rich Richer
  • 2 hours Shale to be profitable in 2019!!!
  • 15 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 15 hours California Threatens Ban on ICE Cars
  • 15 hours IMO2020 To scrub or not to scrub
  • 7 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 38 mins Shell ‘to have commercial wind farms’ by early 2020s
  • 15 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 7 days How can Trump 'own' a trade war?
  • 15 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 10 hours Some Good News on Climate Change Maybe
Meet America’s Newest $9 Trillion Climate Change Solution

Meet America’s Newest $9 Trillion Climate Change Solution

Democratic Presidential hopeful and Washington…

Mexico Launches Its First Gas Price Index

Flag

Mexico’s energy regulator has announced the first publication of a natural gas wholesale price index for the first time since introducing sweeping energy reforms, with more regional indices on the way.

The index will come out monthly and will be based on wholesale transactions on the local gas market, made up of a national average of all such transactions as reported by gas marketers every month.

The index aims to help efforts to boost liquidity in Mexico’s nascent natural gas market. As liquidity improves, the index will become increasingly specific, including regional data or liquidity segmentation.

Eventually, the index will reflect daily natural gas prices, as the energy watchdog works to provide all market participants with more transparency to stimulate trade.

According to guidelines the regulator, CRE, approved last week, the IPGN index will also include the price per molecule and the cost of delivery. It will be updated on CRE’s website 15 days after the end of each calendar month.

The index "will enable natural gas market participants to have more information to make better decisions and indicators on the dynamism of the Mexican natural gas market," the watchdog said, adding it used best international reporting practices from existing gas index reporters, to provide local gas traders with access to an international base for comparison.

Related: The Caribbean Is Poised To Become The Next Major Oil Region

Currently, gas marketers in the country are obliged to submit daily and monthly reports on their transactions. The purpose is to collect data on day-ahead spot market sales and the reporting system has been in place since the end of last year but it was only last month that traders could start actually reporting transactions, after a capacity reservation regime came into effect.

The regulator said it expected private reporting agencies to emerge at some point and when they do, the CRE could stop publishing the IPGN, which, it noted, is not meant to serve as a mandatory reference price.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News