Mexico aims to boost natural gas output by 67% by 2010, up from 4.8 bcfd in 1999, to meet expected demand growth of 9%/year during the next decade, President Ernesto Zedillo announced during the presentation of Mexico's Year-2000 energy program.
"I have instructed the Energy Ministry to develop a strategic natural gas development plan, with the objective of boosting production by two-thirds in the coming decade, putting special emphasis on the exploration and development of new natural gas wells and fields, as well as increasing the efficiency of already existing natural gas extraction activities," Zedillo said.
Mexico hopes to boost gas output by 68 MMcfd in 2000. The state has budgeted 4 billion pesos toward gas development projects, with 60% of the total being earmarked for exploration projects.
Gas demand in Mexico has grown 27% since 1995, Zedillo said, aided by sector reforms instituted 5 years ago that opened Mexico's natural gas sector to increased private participation, particularly in transport, storage, and distribution activities. Those reforms have brought private sector investments totaling about 20 billion pesos.
Energy Minister Luis Tellez said Mexico would auction concessions for three more natural gas distribution zones in 2000. These are expected to capture investments of about 1.6 billion pesos. Those zones include the Puebla-Tlaxcala zone and the Guadalajara zone.
