boosts natural gas system transparency
TRANSCRIPT
Boosts Natural gas system
traNspareNcy
By Claudia Espinosa
NEw
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
MExiCorsquos CENAGAs Boosts NAturAl GAs systEM trANspArENCy
CENAGAS
By ClAudiA ESpiNoSA SEptEmBEr 2019
New out-of-balance formula implementation delayed
ceNagas publishing daily regional sistrangas linepack reports
cre requiring greater transparency from ceNagas
out-of-balance system users likely to see greater costs
mexicorsquos gas transmission system operator (tso) ceNagas has encountered some delays in fully implementing a temporary set of rules for balancing mexicorsquos national sistrangas grid but the improvements thus far mean slightly increased transparency for users
the implementation of the rules with the most potential to result in increased costs for out-of-balance system users has been delayed as ceNagas completes changes to
a platform that will allow it to apply a new formula that determines if a user is out of balance until the changes are completed the formula found in the most recent user contract terms known as tcps in spanish will continue to apply according to a 31 august ceNagas statement
ceNagas said it plans to inform sistrangas users when the platform changes are ready that would allow the full implementation of the new temporary balancing rules
users seeking information that could help them stay in balance in the interim can now refer to reports published three times per day on ceNagasrsquo electronic bulletin board the tso began publishing the reports on 31 august and they include data on linepack levels for all regions served by the sistrangas grid
one source said the reports are too general in nature to
LNG storage facilities
Transmission pipelines operated by CENAGAS
Private transmission pipelines
Transmission pipelines under construction
Transmission pipeline projects (permits issuancetender processplanningopen season)
CitiesReference locations
Cross-border interconnection
Ensenada
Tijuana
Mexicali
Tucson
Waha
Ojinaga
Samalayuca
EI Encino
EI Oro
Mazatlan
Manzanillo
Lazaro Cardenas
Acapulco
Durango
La LagunaTopolobampo
HermosilloPuerto Libertad
Guaymas
Altamira
Tuxpan
Ciudad Pemex
Merida Cancun
Nuevo PemexSalina Cruz
Tapachula
CempoalaNativitas
TulaAltoApaseo el
Vde Reyes
Los Naranjos
Guadalajara
Aguascalientes
ZacatecasSanLuis
Potosi
HuexcaTo
lucaEscobeedo
Pedro
EI Hue
co
San Is
idro
Nogales
Naco
Agua Prie
ta (x
2)
San Jer
onim
o
Sasabe
Los Algodones
Acuna
Piedras Negras
MEXICO NATURAL GAS INFRASTRUCTURE
Source SENER
Colombia
CdMier NuecesCamargo
Arguelles (x2)Reynosa (x2)Rio Bravo
Matamoros
Los RamonesEscobedoMonterrey
Agua Dulce
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
help a particular user although they could indicate when ceNagas is going to exercise its new abilities under the temporary balancing rules
market participants can also monitor daily and historical sistrangas operating volumes on an energy ministry (seNer) site launched toward the end of the previous administration
AdditioNAl trANspArENCythe new temporary balancing rules require ceNagas to publish monthly reports on its electronic bulletin board the information includes when and why ceNagas made any last-minute volume adjustments to gas received and delivered and whether ceNagas purchased or sold natural gas to maintain system balance or contracted additional services from compression stations among other things the rules approved by energy regulator cre in July also require ceNagas to report these actions to cre during the first 10 days of each month along with the related costs and penalties for each system user involved It is currently unclear if these reports will be made public
NEw MEtEriNGceNagas said in its 31 august statement it had been notified by cre of the 19 July approval of the temporary balancing rules on 13 august this means ceNagas had until 10 september (20 business days after ceNagas was notified of the approval) to present to cre a plan for implementing new gas metering required by the temporary balancing rules
cre stipulated a February 2020 deadline for the implementation of new gas metering something that would assist in improving what sources currently consider a ldquomessyrdquo gas balancing situation in mexico one gas market
source said they think the modernisation of the gas metering system would take closer to two years instead of six months
out-of-BAlANCE usErssistrangas users who are knowingly or unknowingly out of balance are likely to see greater costs under the new rules
users have previously said sistrangas gas balancing seems to have worsened in line with decreasing domestic production as well as internal changes at the tso users have said they are often not notified they are out of balance until long afterward and that the same was true in previous years due to poor metering
the new balancing rules which are a final version of condition eight initially proposed in November 2018 will require ceNagas to increase transparency even further something that would assist users in determining whether or not they are out of balance and to adjust accordingly the entity would post information to the ceNagas electronic bulletin board
the balancing situation has been generated in part by a lack of modern gas metering in the sistrangas which will be required to upgrade by February 2020 according to energy regulator crersquos 19 July approval of the new balancing rules
MystEry GAs AGrEEMENtceNagas also appears to be taking action on the gas balancing issues in the interim as mexicorsquos Business coordinating council (cce in spanish) said it had reached an agreement with tso ceNagas on managing natural gas imbalances in mexicorsquos national sistrangas gas grid in a step designed to bring greater certainty to input costs for the private sector
mExiCo ENErGy rEport (mEr)
the leading English language information source for Mexicorsquos emerging energy market
the weekly mer publication provides news commentary analysis data and prices for the mexican power and gas markets enabling you to make better business decisions
Click here to find out more about the Mexico Energy report
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
cce a group focused on coordinating efforts among various business groups in mexico said in a 12 september press release that the unspecified agreement was reached at roundtable meetings coordinated by the office of the president the release did not include details on the nature of the agreement or whether other natural gas market participants outside of the cce would benefit Issues with gas balancing in the sistrangas have been a source of increased controversy as the gas system has struggled with consistently-low linepack levels since october 2018 according to data from energy ministry seNer Neither cce nor ceNagas immediately responded to requests for comment
MoviNG forwArdDavid rosales former director of the natural gas and petrochemicals unit at energy ministry seNer said it is currently unclear if the new metering plan could require users to pay for their own metering or if ceNagas will handle that change However he believes it very likely users especially those drawing gas from parts of the sistrangas lacking supply will see higher transport tariffs in the coming months
rosales who is now a midstream and downstream consultant at mexico and us-based talanza energy said ceNagas is likely to propose new transport tariffs to cre this year but that their approval and implementation will depend on the complexity of ceNagasrsquo change request
He said he also sees a combination of risks and opportunities for gas market participants under the new rules especially opportunities for compression
claudia espinosa is the editor of the IcIs mexico energy report she joined IcIs in 2017
and has covered the markets in mexico and the americas previously claudia consulted on latin american political and economic issues for organizations in the us and mexico she
holds a Bachelor of arts degree and a masterrsquos degree in international affairs focusing on latin american politics and business management
ClAudiA ESpiNoSA Editor mExiCo ENErGy rEport
ABout thE Author
uNdErStANd dEvElopmENtS iN thE GloBAl lNG mArkEt with livE priCES iNtuitivE ANAlytiCS ANd
Supply forECAStSICIS global market intelligence allows you to stay on top of changes in the LNG market including price movements and developments impacting supplydemand fundamentals so that you understand exactly how changes in LNG and gas could impact your business
with iCis you CANn assess the impact of current and future events across
every portn gain a complete view of global supplyn get a long-term view of future contracts rates and
supplier performancen make faster chartering and trading decisions with real-
time cargo tracking
Arrange a demo
station operators gas meter suppliers and marketers able to consolidate user imbalances New risks require users to closely monitor their consumption and nearby grid conditions to avoid strict penalties under the new balancing rules rosales also said marketers could face fees if their clients are out of balance depending on their contract
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
MExiCorsquos CENAGAs Boosts NAturAl GAs systEM trANspArENCy
CENAGAS
By ClAudiA ESpiNoSA SEptEmBEr 2019
New out-of-balance formula implementation delayed
ceNagas publishing daily regional sistrangas linepack reports
cre requiring greater transparency from ceNagas
out-of-balance system users likely to see greater costs
mexicorsquos gas transmission system operator (tso) ceNagas has encountered some delays in fully implementing a temporary set of rules for balancing mexicorsquos national sistrangas grid but the improvements thus far mean slightly increased transparency for users
the implementation of the rules with the most potential to result in increased costs for out-of-balance system users has been delayed as ceNagas completes changes to
a platform that will allow it to apply a new formula that determines if a user is out of balance until the changes are completed the formula found in the most recent user contract terms known as tcps in spanish will continue to apply according to a 31 august ceNagas statement
ceNagas said it plans to inform sistrangas users when the platform changes are ready that would allow the full implementation of the new temporary balancing rules
users seeking information that could help them stay in balance in the interim can now refer to reports published three times per day on ceNagasrsquo electronic bulletin board the tso began publishing the reports on 31 august and they include data on linepack levels for all regions served by the sistrangas grid
one source said the reports are too general in nature to
LNG storage facilities
Transmission pipelines operated by CENAGAS
Private transmission pipelines
Transmission pipelines under construction
Transmission pipeline projects (permits issuancetender processplanningopen season)
CitiesReference locations
Cross-border interconnection
Ensenada
Tijuana
Mexicali
Tucson
Waha
Ojinaga
Samalayuca
EI Encino
EI Oro
Mazatlan
Manzanillo
Lazaro Cardenas
Acapulco
Durango
La LagunaTopolobampo
HermosilloPuerto Libertad
Guaymas
Altamira
Tuxpan
Ciudad Pemex
Merida Cancun
Nuevo PemexSalina Cruz
Tapachula
CempoalaNativitas
TulaAltoApaseo el
Vde Reyes
Los Naranjos
Guadalajara
Aguascalientes
ZacatecasSanLuis
Potosi
HuexcaTo
lucaEscobeedo
Pedro
EI Hue
co
San Is
idro
Nogales
Naco
Agua Prie
ta (x
2)
San Jer
onim
o
Sasabe
Los Algodones
Acuna
Piedras Negras
MEXICO NATURAL GAS INFRASTRUCTURE
Source SENER
Colombia
CdMier NuecesCamargo
Arguelles (x2)Reynosa (x2)Rio Bravo
Matamoros
Los RamonesEscobedoMonterrey
Agua Dulce
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
help a particular user although they could indicate when ceNagas is going to exercise its new abilities under the temporary balancing rules
market participants can also monitor daily and historical sistrangas operating volumes on an energy ministry (seNer) site launched toward the end of the previous administration
AdditioNAl trANspArENCythe new temporary balancing rules require ceNagas to publish monthly reports on its electronic bulletin board the information includes when and why ceNagas made any last-minute volume adjustments to gas received and delivered and whether ceNagas purchased or sold natural gas to maintain system balance or contracted additional services from compression stations among other things the rules approved by energy regulator cre in July also require ceNagas to report these actions to cre during the first 10 days of each month along with the related costs and penalties for each system user involved It is currently unclear if these reports will be made public
NEw MEtEriNGceNagas said in its 31 august statement it had been notified by cre of the 19 July approval of the temporary balancing rules on 13 august this means ceNagas had until 10 september (20 business days after ceNagas was notified of the approval) to present to cre a plan for implementing new gas metering required by the temporary balancing rules
cre stipulated a February 2020 deadline for the implementation of new gas metering something that would assist in improving what sources currently consider a ldquomessyrdquo gas balancing situation in mexico one gas market
source said they think the modernisation of the gas metering system would take closer to two years instead of six months
out-of-BAlANCE usErssistrangas users who are knowingly or unknowingly out of balance are likely to see greater costs under the new rules
users have previously said sistrangas gas balancing seems to have worsened in line with decreasing domestic production as well as internal changes at the tso users have said they are often not notified they are out of balance until long afterward and that the same was true in previous years due to poor metering
the new balancing rules which are a final version of condition eight initially proposed in November 2018 will require ceNagas to increase transparency even further something that would assist users in determining whether or not they are out of balance and to adjust accordingly the entity would post information to the ceNagas electronic bulletin board
the balancing situation has been generated in part by a lack of modern gas metering in the sistrangas which will be required to upgrade by February 2020 according to energy regulator crersquos 19 July approval of the new balancing rules
MystEry GAs AGrEEMENtceNagas also appears to be taking action on the gas balancing issues in the interim as mexicorsquos Business coordinating council (cce in spanish) said it had reached an agreement with tso ceNagas on managing natural gas imbalances in mexicorsquos national sistrangas gas grid in a step designed to bring greater certainty to input costs for the private sector
mExiCo ENErGy rEport (mEr)
the leading English language information source for Mexicorsquos emerging energy market
the weekly mer publication provides news commentary analysis data and prices for the mexican power and gas markets enabling you to make better business decisions
Click here to find out more about the Mexico Energy report
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
cce a group focused on coordinating efforts among various business groups in mexico said in a 12 september press release that the unspecified agreement was reached at roundtable meetings coordinated by the office of the president the release did not include details on the nature of the agreement or whether other natural gas market participants outside of the cce would benefit Issues with gas balancing in the sistrangas have been a source of increased controversy as the gas system has struggled with consistently-low linepack levels since october 2018 according to data from energy ministry seNer Neither cce nor ceNagas immediately responded to requests for comment
MoviNG forwArdDavid rosales former director of the natural gas and petrochemicals unit at energy ministry seNer said it is currently unclear if the new metering plan could require users to pay for their own metering or if ceNagas will handle that change However he believes it very likely users especially those drawing gas from parts of the sistrangas lacking supply will see higher transport tariffs in the coming months
rosales who is now a midstream and downstream consultant at mexico and us-based talanza energy said ceNagas is likely to propose new transport tariffs to cre this year but that their approval and implementation will depend on the complexity of ceNagasrsquo change request
He said he also sees a combination of risks and opportunities for gas market participants under the new rules especially opportunities for compression
claudia espinosa is the editor of the IcIs mexico energy report she joined IcIs in 2017
and has covered the markets in mexico and the americas previously claudia consulted on latin american political and economic issues for organizations in the us and mexico she
holds a Bachelor of arts degree and a masterrsquos degree in international affairs focusing on latin american politics and business management
ClAudiA ESpiNoSA Editor mExiCo ENErGy rEport
ABout thE Author
uNdErStANd dEvElopmENtS iN thE GloBAl lNG mArkEt with livE priCES iNtuitivE ANAlytiCS ANd
Supply forECAStSICIS global market intelligence allows you to stay on top of changes in the LNG market including price movements and developments impacting supplydemand fundamentals so that you understand exactly how changes in LNG and gas could impact your business
with iCis you CANn assess the impact of current and future events across
every portn gain a complete view of global supplyn get a long-term view of future contracts rates and
supplier performancen make faster chartering and trading decisions with real-
time cargo tracking
Arrange a demo
station operators gas meter suppliers and marketers able to consolidate user imbalances New risks require users to closely monitor their consumption and nearby grid conditions to avoid strict penalties under the new balancing rules rosales also said marketers could face fees if their clients are out of balance depending on their contract
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
help a particular user although they could indicate when ceNagas is going to exercise its new abilities under the temporary balancing rules
market participants can also monitor daily and historical sistrangas operating volumes on an energy ministry (seNer) site launched toward the end of the previous administration
AdditioNAl trANspArENCythe new temporary balancing rules require ceNagas to publish monthly reports on its electronic bulletin board the information includes when and why ceNagas made any last-minute volume adjustments to gas received and delivered and whether ceNagas purchased or sold natural gas to maintain system balance or contracted additional services from compression stations among other things the rules approved by energy regulator cre in July also require ceNagas to report these actions to cre during the first 10 days of each month along with the related costs and penalties for each system user involved It is currently unclear if these reports will be made public
NEw MEtEriNGceNagas said in its 31 august statement it had been notified by cre of the 19 July approval of the temporary balancing rules on 13 august this means ceNagas had until 10 september (20 business days after ceNagas was notified of the approval) to present to cre a plan for implementing new gas metering required by the temporary balancing rules
cre stipulated a February 2020 deadline for the implementation of new gas metering something that would assist in improving what sources currently consider a ldquomessyrdquo gas balancing situation in mexico one gas market
source said they think the modernisation of the gas metering system would take closer to two years instead of six months
out-of-BAlANCE usErssistrangas users who are knowingly or unknowingly out of balance are likely to see greater costs under the new rules
users have previously said sistrangas gas balancing seems to have worsened in line with decreasing domestic production as well as internal changes at the tso users have said they are often not notified they are out of balance until long afterward and that the same was true in previous years due to poor metering
the new balancing rules which are a final version of condition eight initially proposed in November 2018 will require ceNagas to increase transparency even further something that would assist users in determining whether or not they are out of balance and to adjust accordingly the entity would post information to the ceNagas electronic bulletin board
the balancing situation has been generated in part by a lack of modern gas metering in the sistrangas which will be required to upgrade by February 2020 according to energy regulator crersquos 19 July approval of the new balancing rules
MystEry GAs AGrEEMENtceNagas also appears to be taking action on the gas balancing issues in the interim as mexicorsquos Business coordinating council (cce in spanish) said it had reached an agreement with tso ceNagas on managing natural gas imbalances in mexicorsquos national sistrangas gas grid in a step designed to bring greater certainty to input costs for the private sector
mExiCo ENErGy rEport (mEr)
the leading English language information source for Mexicorsquos emerging energy market
the weekly mer publication provides news commentary analysis data and prices for the mexican power and gas markets enabling you to make better business decisions
Click here to find out more about the Mexico Energy report
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
cce a group focused on coordinating efforts among various business groups in mexico said in a 12 september press release that the unspecified agreement was reached at roundtable meetings coordinated by the office of the president the release did not include details on the nature of the agreement or whether other natural gas market participants outside of the cce would benefit Issues with gas balancing in the sistrangas have been a source of increased controversy as the gas system has struggled with consistently-low linepack levels since october 2018 according to data from energy ministry seNer Neither cce nor ceNagas immediately responded to requests for comment
MoviNG forwArdDavid rosales former director of the natural gas and petrochemicals unit at energy ministry seNer said it is currently unclear if the new metering plan could require users to pay for their own metering or if ceNagas will handle that change However he believes it very likely users especially those drawing gas from parts of the sistrangas lacking supply will see higher transport tariffs in the coming months
rosales who is now a midstream and downstream consultant at mexico and us-based talanza energy said ceNagas is likely to propose new transport tariffs to cre this year but that their approval and implementation will depend on the complexity of ceNagasrsquo change request
He said he also sees a combination of risks and opportunities for gas market participants under the new rules especially opportunities for compression
claudia espinosa is the editor of the IcIs mexico energy report she joined IcIs in 2017
and has covered the markets in mexico and the americas previously claudia consulted on latin american political and economic issues for organizations in the us and mexico she
holds a Bachelor of arts degree and a masterrsquos degree in international affairs focusing on latin american politics and business management
ClAudiA ESpiNoSA Editor mExiCo ENErGy rEport
ABout thE Author
uNdErStANd dEvElopmENtS iN thE GloBAl lNG mArkEt with livE priCES iNtuitivE ANAlytiCS ANd
Supply forECAStSICIS global market intelligence allows you to stay on top of changes in the LNG market including price movements and developments impacting supplydemand fundamentals so that you understand exactly how changes in LNG and gas could impact your business
with iCis you CANn assess the impact of current and future events across
every portn gain a complete view of global supplyn get a long-term view of future contracts rates and
supplier performancen make faster chartering and trading decisions with real-
time cargo tracking
Arrange a demo
station operators gas meter suppliers and marketers able to consolidate user imbalances New risks require users to closely monitor their consumption and nearby grid conditions to avoid strict penalties under the new balancing rules rosales also said marketers could face fees if their clients are out of balance depending on their contract
Copyright 2019 Reed Business Information Ltd ICIS is a member of RBI and is part of RELX Group plc ICIS accepts no liability for commercial decisions based on this content
cce a group focused on coordinating efforts among various business groups in mexico said in a 12 september press release that the unspecified agreement was reached at roundtable meetings coordinated by the office of the president the release did not include details on the nature of the agreement or whether other natural gas market participants outside of the cce would benefit Issues with gas balancing in the sistrangas have been a source of increased controversy as the gas system has struggled with consistently-low linepack levels since october 2018 according to data from energy ministry seNer Neither cce nor ceNagas immediately responded to requests for comment
MoviNG forwArdDavid rosales former director of the natural gas and petrochemicals unit at energy ministry seNer said it is currently unclear if the new metering plan could require users to pay for their own metering or if ceNagas will handle that change However he believes it very likely users especially those drawing gas from parts of the sistrangas lacking supply will see higher transport tariffs in the coming months
rosales who is now a midstream and downstream consultant at mexico and us-based talanza energy said ceNagas is likely to propose new transport tariffs to cre this year but that their approval and implementation will depend on the complexity of ceNagasrsquo change request
He said he also sees a combination of risks and opportunities for gas market participants under the new rules especially opportunities for compression
claudia espinosa is the editor of the IcIs mexico energy report she joined IcIs in 2017
and has covered the markets in mexico and the americas previously claudia consulted on latin american political and economic issues for organizations in the us and mexico she
holds a Bachelor of arts degree and a masterrsquos degree in international affairs focusing on latin american politics and business management
ClAudiA ESpiNoSA Editor mExiCo ENErGy rEport
ABout thE Author
uNdErStANd dEvElopmENtS iN thE GloBAl lNG mArkEt with livE priCES iNtuitivE ANAlytiCS ANd
Supply forECAStSICIS global market intelligence allows you to stay on top of changes in the LNG market including price movements and developments impacting supplydemand fundamentals so that you understand exactly how changes in LNG and gas could impact your business
with iCis you CANn assess the impact of current and future events across
every portn gain a complete view of global supplyn get a long-term view of future contracts rates and
supplier performancen make faster chartering and trading decisions with real-
time cargo tracking
Arrange a demo
station operators gas meter suppliers and marketers able to consolidate user imbalances New risks require users to closely monitor their consumption and nearby grid conditions to avoid strict penalties under the new balancing rules rosales also said marketers could face fees if their clients are out of balance depending on their contract