An Inescapable Reality

28 February 2019
By Veronica Irastorza

In an article published in the February issue of Manufactura Magazine, NERA Associate Director Veronica Irastorza analyzes the natural gas market in Mexico. Even with President Andrés Manuel López Obrador’s plan to increase natural gas production, Mexico would need to continue importing one-third of the country’s total demand. Ms. Irastorza analyzes the two models of gas market organization: 1) the European model, which seeks to generate efficiency with centralized monopolistic structures, and 2) the North American model, which does not require a regulator and operates competitively.

Ms. Irastorza observes that the most logical approach for Mexico would be to transition to the North American model, with Mexican regulators facilitating that transition while also working to reduce Mexico’s dependence on gas.

The article was published in the 276th edition of Manufactura Magazine, released in February 2019.