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Lack of infrastructure in the gas sector inhibits investment of USD 500 million in Mexico: AMGNV

Natural Gas supply in Mexico can be improved to avoid shortages (Photo: Reuters / Timothy Gardner) Natural Gas supply in Mexico can be improved to avoid shortages (Photo: . / Timothy Gardner)

As a result of the winter storm that hit the southern United States, natural gas consumption rose to unprecedented levels in that region, especially in Texas, leaving the main border cities in northern Mexico devoid of this resource.

To alleviate this imbalance, the federal government mobilized the national gas sector to transport the hydrocarbon to where it is needed; Nevertheless, this action also had repercussions collateral that affected domestic consumption and different industries that depend on the branch.

Against this background, Mexican Association of Natural Gas Vehicles, CNG, LNG and Biogas (AMGNV) made a series of recommendations for the benefit of users, the private sector and the federal administration, since the meteorological phenomenon that resulted in the gas shortage in Mexico, although unusual and unlikely, also revealed the lack of infrastructure in the Mexican gas sector. Through an official statement, AMGNV proposed three specific points:

A public transportation bus is seen during a blackout in Monterrey, Mexico.  February 16, 2021. REUTERS / Daniel Becerril A public transportation bus is seen during a blackout in Monterrey, Mexico. February 16, 2021. REUTERS / Daniel Becerril

1.- Comprehensive review of the fuel supply policy, including natural gas, that guarantees stability and security in supply, including national production, import, storage and distribution.

two.- Prioritize supply to vehicular natural gas stations (GNV) and the CNG compression stations, main sources of attention to the mass transport of citizens and other essential cargo units.

3.- Issue exception measures in SENER, CRE and ASEA, which allow expediting authorizations for the expansion of the infrastructure for vehicular natural gas (NGV), compressed (CNG), liquefied (LNG) and associated services.

Given the doubts that arose in the proposed approaches, . Mexico Y Andres Bayona, president AMGNV, established a conversation in which the gas leader clarified some points so that this event, if repeated, don’t wreak the same havoc.

The sector called for an effective dialogue with the federal government to streamline the processes that are paused (Photo: Government of Mexico) The sector called for an effective dialogue with the federal government to streamline the processes that are paused (Photo: Government of Mexico)

Initially, Bayona Insignares reaffirmed that its specialty is in public transport vehicles and cargo trucks powered by natural gas, which, due to its own chemical composition, offers a less polluting alternative than those powered by gasoline or diesel, in such a way that it explained that the increase in this sector, in addition to being beneficial for the administration of the resource, is favorable for the environment.

“Mexico has more than 45 million vehicles and 55,000 of them use natural gas, so we are infinitely small, however we are high impact vehicles, with millions of daily passengers and thousands of tons of daily cargo”explained to . Mexico.

Compared to countries in the region, the penetration of this sector represents a great investment opportunity, since in Latin American countries such as Peru, Brazil, Colombia, around 10% of the vehicle fleet It is powered by natural gas, this means that Mexico has the opportunity to increase to 4.5 million vehicles that can be powered by this hydrocarbon; However, for this to be achieved, there must be an investment in NGV service stations; however, investment is slow.

However, there is a defined program for the storage of natural gas, only it is not yet in place for administrative reasons, but if approved. an investment of around 10,000 million pesos could be made.

Investment in the sector will favor IP, the government and users (Photo: EFE) Investment in the sector will favor IP, the government and users (Photo: .)

“There are ongoing programs, for example, a pipeline that goes to Mayaluca in which it will allow that in the future if there is any decision on the pipeline that goes from Texas, because we have access from the other side, then we could see gas from another source ”he added, which could prevent this type of mishap like the one we are experiencing at the moment, but dialogue with the federal government is necessary.

“The other point that I would like to add, is necessarily the private initiative in our companies, they are a sector that we are in an investment decision process, we have already made the decisions of the companies to invest […] We calmly, I can tell you, we have investments close to USD 500 (approximately 10,000 million Mexican pesos), we can invest very quickly in this project in the next two years”.

Finally, he recommended that the government should establish or strengthen risk mitigation programs, where, finally, all would be winners: the Private Initiative, the federal government and the users.

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