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How does OPEC+ agreement and coronavirus impact Mexico's energy market?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
With demand destruction on one side and a supply surplus on the other, market dynamics are changing quickly. Waha basis has tightened significantly, no longer resulting in Permian gas being the lowest cost priced in North America. As Mexico's gas prices are indexed to representative southern US price markers, an increase in the gas molecule cascades down to Mexican territory. Gas remains the preferred baseload for power generation and the price-setter for energy prices. With a higher gas-based price, what does it mean for the energy market?
Table of contents
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Executive Summary
- Two's company, three's a crowd - Mexico, OPEC+ and coronavirus pandemic effects
- Coronavirus has turned off the lights
- Demand and YoY change for key touristic regions
- Short-term implications
Tables and charts
This report includes the following images and tables:
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Mexico's GDP vs. Industrial gas demandLoad YoY growth for the SINMonthly peak demand in the national power grid (SIN)
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Cancún - PeninsularLos Cabos - Baja California SurMexico and US gas prices (March 2020)Historical marginal cost of energy
What's included
This report contains:
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