In light of Mexico’s plans to use LNG as a fuel to generate electric power, in future the country may invest in production overseas to assure its supply, a Mexican utility executive told an energy told an energy conference recently.
Comision Federal de Electridad (CFE) would require a change in Mexican law to invest in foreign gas wells and liquefaction plants but may need to do so in order to meet future power demands.
Juan Granados Zuniga told Platts Mexican energy conference, “In the future, CFE may go further up the value chain.” The comments came as Zuniga told at the conference of the growing need for electricity in Mexico.
“We have to guarantee there is enough fuel to produce it. One way to do it is through the purchase, storage and regasification of LNG,” added Zuniga.
Caution was urged however, as Zuniga explained to Reuters that any plans are not on the immediate horizon, “That’s in the long term. Planning in Mexico takes a long time.”
Demand for gas is expected grow 3.9% per year through to 2015, while domestic supply is only expected to grow 2.8% per year, indicating that LNG may well be needed.