Mexico Sets New Natural Gas Pipeline Tariffs

SEATTLE (Oil Monster): Mexico's energy regulatory commission (CRE) approved new tariff zones and prices for gas transport in the national pipeline system, in a move designed to reflect the pipeline build-out since the energy reform.

"The new zoning seeks to reflect with more precision the costs associated with transporting gas between different parts of the country," CRE said.

National pipeline administrator Cenagas proposed a redesign of the tariff zones and tariff levels in March, adding three tariff zones to the existing six, mainly in northern Mexico, to reflect the significant pipeline build-out that has occurred under Enrique Peña Nieto's administration.

The national pipeline system is comprised of 10,555km (6,559mi) of pipelines and some 8,000km of new pipelines which will be in-service by the end of this year, bringing capacity in the national pipeline system to 6.4Bcf/d.

"The tariffs were defined taking into account existing infrastructure and commercial natural gas flows … and reserved capacity in each zone," CRE said.

Tariffs will range from Ps2.3/GJ in fixed capacity in zone seven that covers Veracruz, Puebla and Tlaxcala to the most expensive at Ps6.1/GJ in fixed capacity in zone nine that covers the pipeline between Jaltipan, Veracruz and Salina Cruz, Oaxaca.

The rezoned tariffs will remain the same unless technical conditions change, "allowing users to take decisions in an environment of stability, legal and commercial certainty."

The new tariffs are also designed to send economic signals for the development of additional infrastructure in parts of the country such as southern Mexico that are currently underserved.

"With this decision CRE is … creating competitive conditions in order to increase natural gas production, the most efficient fuel in terms of cost and environmental impact for power generation and industrial processes."

The new zoning and tariff system will enter into effect from 30 September.