« BackNews: Mexico To Tender For LNG Storage

Mexico To Tender For LNG Storage

The Mexican Energy Ministry has re-engaged plans for the country’s first natural gas storage tender which could soon see energy sources under measure by automatic tank gauging systems.

The move, which will see a previously scrapped plan for tender of storage close to the border with Texas, would be the country’s first and only tendered storage solution for natural gas energy, firming up Mexico’s energy security.

Up to now, the country has relied on LNG import terminals to balance its short term supply issues, whereas this new storage policy would set minimum inventories, meaning strategic reserves are available when required.

According to Natural Gas Intel, the site on which the proposed storage would sit is at an abandoned well, sitting on the Texan border. Energy Minister Pedro Joaquin Coldwell said that the paperwork had already been filed to change ownership from national patrimony to the Centro Nacional de Control del Gas Natural: “This is going to be a flagship project as we’ve had to come up with a special procedure to assign this new function to a depleted field,” he said.

This portion of Mexico has more than half of pipeline imports from the US running through it, largely due to the presence of the Agua Dulce area in South Texas. 

The depleted site at the Brasil field in Tamaulipas was previously the subject of an abandoned development project in the mid-2000s, which looked to create an underground storage project, import terminal for liquefied natural gas and a natural gas pipeline.