What changes are needed for a meaningful reform in Midstream Gas?

It has been remarked that in recent years there have been two failed openings in the energy sector: gas and power. Building on policy guidelines developed by his predecessor, the government of Ernesto Zedillo (1994‐2000) launched a major reform in the natural gas sector: the Natural Gas Act of 1995 established that the importation and export of natural gas was open to private parties, as was the construction, ownership and operation of gas transmission lines and gas storage facilities (then understood as ones in salt caverns or abandoned gas wells).

In addition, the Energy Regulatory Commission (CRE) was established to attend to the public tendering and administration of natural gas distribution franchises, as well as to tariffs and policies in conditions where a lack of competitive conditions were deemed to exist. It was understood at the time that in the future Pemex Gas would no longer be involved in the construction and business management of new gas transmission lines.


Written by

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.