pwr_july-2024 - 6

Mexico Increases Reliance on
Natural Gas to Support Electricity
Demand
Mexico is ramping up its use of natural
gas for power generation, with several
plants coming online in recent years,
and at least 10 more (Table 1) expected
to come online this year, next year, or in
2026. The U.S. Energy Information Administration
(EIA) in an analysis published
in April of this year forecast an increase
in U.S. natural gas pipeline exports to
Mexico, noting that several pipelines in
Mexico-Tula-Villa de Reyes, Tuxpan-Tula,
and Cuxtal Phase II connecting to the
Energía Mayakan pipeline on the Yucatán
Peninsula-will become fully operational
this year and next, after beginning partial
service in 2022.
The agency said flows via the Sur de
Texas-Tuxpan underwater
pipeline
are
likely to increase this year when that
line begins delivering U.S.-produced
natural gas to Fast LNG (liquefied natural
gas) Altamira, Mexico's first LNG export
project. The Center on Global Energy
Policy at Columbia University in October
2023 reported that Mexico meets most
(nearly 70%) of its demand for natural
gas from gas sent via pipeline from the
U.S. The group said Mexico is receiving
between 6 billion to 7 billion cubic feet
per day (Bcf/d). The Columbia report said
increased imports from the U.S. have
come because Petróleos Mexicanos
(Pemex), Mexico's national oil company,
cannot produce enough natural gas to
keep pace with the country's demand.
The demand for gas has primarily
been from the power generation sector,
as demand for electricity across Mexico
has increased dramatically. The country's
national energy ministry, known as
SENER, said more than 60% of Mexico's
electric capacity additions over the past
several years have been natural gas-fired
power plants, a trend expected to continue
through this decade.
Veronica
Irastorza, senior
managing
director for FTI Consulting, told POWER,
" Mexico relies heavily on natural gas as its
primary fuel source for electricity generation,
accounting for nearly half of its total
energy mix. It's a vital component for numerous
industrial operations [iron, steel,
glass, and petrochemicals to name a few].
Despite a modest uptick in local production
in 2022 following a period of decline,
Mexico still imports mostly from the U.S.
6
Net
#
Plant name
1
2
3
4
5
6
7
8
9
González
Ortega
San Luis Río
Colorado
Mérida
Riviera Maya
Tuxpan Fase I
Salamanca
El Sauz II
Manzanillo III
Lerdo
10 San Luis Potosí
Table 1.
capacity
(MW)
Location
Investment
(million
USD)
683
Baja California
680 Sonora
509 Yucatán
1,037 Quintana Roo
1,086 Veracruz
861 Guanajuato
271 Querétaro
348 Colima
409 Durango
424 San Luis Potosí
691
Start
date
Mar
2025
656 Jan 2025
454
Nov
2025
762 Jan 2025
780
627
291
319
May
2025
2024
2024
2026
Engineering, procurement,
and construction (EPC)
contractor
Siemens Energy and
Powertecno Energía Mexicana
(Técnicas Reunidas and TSK)
Siemens Energy and
Powertecno Energía Mexicana
(Técnicas Reunidas and TSK)
Mitsubishi Power and
Powertecno Energía Mexicana
(Técnicas Reunidas and TSK)
Mitsubishi Power and
Powertecno Energía Mexicana
(Técnicas Reunidas and TSK)
Siemens Energy and Kimex
Ingeniería and Construcción
Mitsubishi Power and TSK
TSK and Siemens Energy
306 Sep 2024 Not available
Not available
350 Apr 2024 Mitsubishi Power and TSK
This chart shows 10 new combined cycle natural gas-fired power plants that have
been recently added or are planned in Mexico over the next couple of years. Source: FTI Consulting
with public information from the Comisión Federal de Electricidad (CFE) Business Plan
2024-2028 de la CFE, CFE's Annual Report 2022, and CFE press releases
around 90% of its natural gas [or 70% if
we include Pemex's reinjections and flaring].
U.S. natural gas exports to Mexico will
continue to grow over the coming decade. "
Irastorza said, " Thanks to the shale
gas revolution and a robust market, the
U.S. has enjoyed some of the most competitive
natural gas prices in the world for
years, benefiting the whole region, including
Mexico. Over the past five years,
pipeline infrastructure facilitating the
transportation of U.S. gas to Mexico has
doubled. In the next few years, the Mexican
government expects to add about
6,000 MW of combined cycles that
will use natural gas. In addition, several
companies are developing [LNG] export
projects in Mexico to export U.S. gas to
Europe and Asia. Two of these plants are
already under construction [New Fortress
in Tamaulipas and Sempra's Costa
Azul in Baja]. A third one, Saguardo Energia,
is also moving forward. "
Among the largest gas-fired plants to
come online recently is Iberdrola's Topolobampo
III plant (Figure 1), which uses GE
Vernova's 7HA.01 gas turbine technology,
along with GE Vernova's extended scope
portfolio for greater efficiency. Topolobwww.powermag.com
ampo
III, a 766-MW facility in the Choacahui
municipality of Ahome in Sinaloa
state, is the first in Mexico powered by
the 7HA.01 turbine. It is supplied by the
nearby Topolobampo natural gas pipeline.
Topolobampo III and other new gasfired
facilities in Mexico are being built
even as the country increases its generation
capacity from renewable energy.
The International Energy Agency (IEA)
recently said the country's population is
expected to grow from about 127 million
today, to more than 150 million by 2050.
The IEA said Mexico's domestic production
of natural gas has risen the past few
years, as have its imports of U.S. gas.
Government officials have said the gas
plants and their baseload power production
provide support for the country's
plan to more than double renewable energy
generation capacity (solar and wind)
from 15 GW to 40 GW by 2030.
Topolobampo III entered commercial
operation in January of this year. Iberdrola
was awarded the contract to build
and operate the power plant in March
2017. " Iberdrola, as a global renewable
energy leader, has always been working
on more sustainable power generation
POWER | July 2024

http://www.powermag.com

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