Insight
Ice, Ice… Blackouts: The polar vortex impacts on Mexico's energy markets
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 2 images and tables including:
- 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:
Other reports you may be interested in
Insight
Future Facing Commodity Forum 2024
Event recording and presentation content for download
$1,050
Insight
Mexico gas, power and renewables service: 2023 in review
With increased energy demand and climate effects testing electrical system resilience, how did Mexico's power and gas markets do in 2023?
$1,050
Insight
Powering progress: How could nearshoring redefine Mexico’s energy markets?
Explore the ripple effects of nearshoring on Mexico’s energy markets to 2030, from gas demand shifts to renewable energy impacts.
$1,050
