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Mexico gas & power: boom or bust?

If Mexico can integrate across sectors, it is more likely to mitigate risk and achieve reform goals

1 minute read

We expect to see US$415 billion in investment over the next two decades due to the reforms, as Mexico builds pipelines, sets the stage for M&A, and enters the robust renewables market to meet clean energy targets.

Our latest multi-client study, 'Boom or bust? Investing in Mexico gas and power', analyzes three industry-based scenarios to ensure your company is uniquely positioned to capitalize on Mexico's gas and power markets. The study underscores that if Mexico can integrate across sectors, implementing a deliberate and phased market liberalization, it is more likely to mitigate risk and achieve reform goals.

Build a feasible strategy as you invest in Mexico's gas and power market. Our multi-client study has insights around the following:

  • Gas and power reform implementation adds complexity moving forward as we see several near-term risks for natural gas reform
  • Driven by volatile GDP growth, power demand has averaged 2.3% growth over the last decade in Mexico
  • Renewables have grown even faster and now account for nearly 10% of overall electricity generation capacity in Mexico
  • Mexico's domestic natural gas production has declined steadily since 2010's peak production of 3.45 bcfd to around 2.81 bcfd in 2015
  • However, the largest uncertainty remains centered on the power industry's breakup of the CFE monopoly
  • Understanding a new marketplace with sensitivities is tough. Our expertise coupled with local knowledge will allow you to understand, analyze and participate.

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