Pemex Response to New Natural Gas Regulations

Market Comment 081 Pemex Response to New Natural Gas Regulations

This report republishes, with retrospective comments, our earlier report of Nov. 17, 1995. That report was about the roll-out of the natural gas law and regulations on Nov. 8, 1995, that began with presentations at Los Pinos that was attended by some 400 guests.

Afterwards, there was a Q&A at the Hotel Nikko, followed by a luncheon hosted by Pemex. Pemex Director General Adrián Lajous made it clear that Pemex would not support the new natural gas market design that was implicit in the law and regulations. Thus, 20 years later, there is no natural gas pipeline that competes with those of Pemex.

Nor, for that matter, is there a single cubic foot of gas storage despite legislation from 1995 that permits it.

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Mexico Energy Intelligence

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.