Pemex considering investments in two LNG plants, says advisor to CEO

Mexico’s state-owned oil and gas company Pemex is considering building two liquefied natural gas (LNG) plants.

One plant would supply the fuel to the southeast of the country and another would serve as a natural gas storage facility.

According to reports in the Mexican media, Rosa Elena Torres Ortiz, an advisor to Pemex CEO Victor Rodriguez Padilla, said one plant could be located in Salina Cruz in Oaxaca state and another at Minatitlán in Veracruz state.

Speaking at a conference in Mexico City, Torres Ortiz did not say how much the plants would cost to build or provide an estimate of their capacity.

The LNG plant in Salina Cruz, where Pemex already operates a refinery, would supply gas by rail to Chiapas, Mexico’s poorest state, and potentially export it to Guatemala.

The government of President Claudia Sheinbaum wants to improve access to energy in Mexico’s underdeveloped regions.

The plant in Veracruz would serve as a natural gas storage facility.

Mexico generates around 60% of its electricity with natural gas imported from the US and the government is becoming increasingly concerned about the security of its energy supply.

The LNG plant in Veracruz would allow Mexico to store small amounts of natural gas for use in the event of any disruption to imports from the US.

Cenagas, which runs Mexico’s state-owned pipeline network, is also analyzing plans for much larger underground storage facilities.