Insight
Ice, Ice… Blackouts: The polar vortex impacts on Mexico's energy markets
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The polar vortex is causing deep struggles, freezing off production and pushing a critical demand uptick to keep the affected population warm. Gas prices quickly surged to new highs, while also generating an undersupply situation. Mexico’s largest gas supply comes from US piped exports. Without the needed storage infrastructure, gas scarcity has quickly escalated – since 12 February, Genscape tracks US-to-Mexico pipeline exports to average 4.7 bcfd, representing a drop of 1.1 bcfd from the prior-30-day average. The consequences of gas shortages were immediately felt in the power sector, resulting in electricity outages affecting more than 4.7 CFE’s final users and rolling blackouts since 15 February. This insight analyses what is currently happening and what to expect during and after the cold storm passes.
Table of contents
- Event
-
Implications
- Near-term market effects
- What to expect?
Tables and charts
This report includes the following images and tables:
- US-to-Mexico daily gas flows per Mexican pipeline (top five)
- February hourly and average daily Local Marginal Prices in the northern regions
What's included
This report contains:
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