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Natural Gas May 14, 2026 01:42:32 AM

Mexico Announces $8.1 Billion Natural Gas Pipeline Expansion to Fuel Power Sector

Carolina
Curiel
OilMonster Author
The initiative seeks to reinforce Mexico’s 21,149-kilometer pipeline network, boosting the country’s supply volumes. 
Mexico Announces $8.1 Billion Natural Gas Pipeline Expansion to Fuel Power Sector

SEATTLE (Oil Monster):  The Mexican government announced a massive 140.9 billion peso ($8.1 billion) investment strategy through 2030 to modernize, maintain, and expand the nation's natural gas pipeline network, aiming to secure energy supplies for a growing fleet of power plants.

The initiative seeks to reinforce Mexico’s 21,149-kilometer pipeline network, boosting the country’s supply volumes. 

Currently the National Natural Gas Control Center (CENAGAS) managing 48% of the system, followed by the Federal Electricity Commission (CFE) at 36%, with Pemex and private operators controlling the remaining 16%.

Under the plan, CENAGAS will spearhead the spending, investing 87.09 billion pesos ($5.06 billion) over the next five years. 

This includes 47.44 billion pesos ($2.75 billion) to build three new pipelines with a combined capacity of 3.64 billion cubic feet per day. The agency will also allocate 12.42 billion pesos ($722 million) for modernization and 27.2 billion pesos ($1.58 billion) for rehabilitation and maintenance.

Concurrently, the state-owned power utility CFE will invest 53.81 billion pesos ($3.13 billion) between 2026 and 2029 to construct nine pipeline projects. 

These lines will supply fuel to CFE’s rapidly expanding generation fleet. The utility is building seven new natural gas power plants with a capacity of 4.56 gigawatts, has tendered four additional plants, and plans to announce two more tenders later this year.

The pipeline expansion comes as Mexico faces a severe domestic supply deficit. The nation relies heavily on the United States to meet its energy demands, importing 6.63 billion cubic feet per day of natural gas via pipelines from its northern neighbor in 2025, according to the U.S. Energy Information Administration.

Data from Mexico's energy secretary shows the country imported between 69% and 75% of its dry gas consumption from 2020 to 2024. 

While state oil company Pemex produced 3.67 billion cubic feet per day of total natural gas in 2025, its dry gas output was just 1.7 billion cubic feet per day, forcing the government to prioritize cross-border infrastructure to ensure grid stability.

Courtesy: www.pipeline-journal.net


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