Mexico Natural Gas Output Continued Upward Trend in February - Natural Gas Intelligence

Mexico Natural Gas Output Continued Upward Trend in February - Natural Gas Intelligence

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Mexico Natural Gas Output Continued Upward Trend in February

Natural gas production in Mexico has continued to creep upwards so far in 2023, a trend that began in 2022.

Domestic output averaged 4.29 Bcf/d in February, up from 3.94 Bcf/d in February 2022. Natural gas production in Mexico averaged 4.25 Bcf/d in January.

State oil company Petróleos Mexicanos (Pemex) supplied 4.07 Bcf/d of the total, according to data from upstream regulator Comisión Nacional de Hidrocarburos (CNH). Production from private sector operators averaged 214 MMcf/d in February.

The top five natural gas producing fields, all operated by Pemex, were Quesqui (687 MMcf/d), Ixachi (324 MMcf/d), Akal (300 MMcf/d), Maloob (294 MMcf/d) and Ku (194 MMcf/d).

Growth from the onshore Quesqui and Ixachi fields in particular has been notable. Last February, Quesqui produced 377 MMcf/d and Ixachi 266 MMcf/d.

Imports accounted for 68% of Mexico’s total gas supply in September 2022, the latest month for which CNH data is available, down from 71% in September 2021. Excluding gas consumed by Pemex, Mexico sourced 82% of its gas via imports in September, versus 88% a year earlier.

Associated gas accounted for 2.378 Bcf/d of total gas output in February.

Oil production was 1.642 million b/d in February compared to 1.634 million b/d in the year-ago period. Private sector oil output accounted for 100,00 b/d of the total, according to CNH.

In February, the top five producing fields of liquid hydrocarbons, including oil and condensate, were Maloob (297,000 b/d), Zaap (198,000 b/d), Quesqui (194,000 b/d), Ayatsil (97,000 b/d) and Tupilco Profundo (88,000 b/d). All five are operated by Pemex.

[ Mexico Matters: Cross-border energy trade between the U.S. and Mexico reached $42 billion l a s t y e a r . Understand this burgeoning trade flow — the projects, politics and natural gas prices — with NGI’s Mexico Gas Price Index. Know more.]

Private Sector Activity

In related upstream news, in late March, Germany’s Wintershall Dea GmbH completed the acquisition of a 37% non-operated participating interest in the oil producing Hokchi Block offshore Mexico. All government approvals for the sale were obtained, the company said.

“The acquisition and the significant production we are adding with it are exactly in line with our strategy to further expand our international portfolio. We are thus strengthening our position in Mexico, one of Wintershall Dea’s most important growth countries,” said Thilo Wieland, company representative for Latin America.

Wintershall Dea is now the second-largest interest holder in the Hokchi Block after operator Hokchi Energy (59.4%). Private equity fund Ainda Energía & Infraestructura SAPI de CV holds the remaining 3.6%. The Hokchi Block produces 27,000 boe/d, making it one of the leading fields among those operated by privately-led companies in Mexico.

Also in late March, Pemex submitted a development plan to authorities for the long-delayed Zama shallow water oil project off Mexico’s southeastern coast. Zama is expected to produce up to 180,000 boe/d of oil and gas at its peak, equal to over 10% of Mexico’s current production.

Pemex is the operator of Zama with a 50.4% participating interest. Stakes in the project are also held by Houston-based Talos Energy Inc. (17.4%), Wintershall (19.8%) and Edinburgh, Scotland-based Harbour Energy plc (12.4%).

The development plan includes two offshore fixed platforms, 46 dry-tree wells, and oil and gas transportation to new facilities at the Dos Bocas maritime terminal in Tabasco state, Talos said.

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