CENAGAS fuels Mexico’s growth

Mexico

Cuitláhuac García Jiménez, managing director of CENAGAS, talks to The Energy Year about the company’s critical role in supplying gas to Mexico and its plans for growing and modernising its pipeline network. CENAGAS serves as Mexico’s natural gas grid control centre.

How critical is CENAGAS in supplying gas to the nation and what synergies does it have with Pemex and Federal Electricity Commission (CFE)?
The natural gas network systems in Mexico are divided into two: those managed by CENAGAS and those managed by the CFE together with private companies. Around 60% of the gas consumed in the country goes through the SISTRANGAS [Integrated National Natural Gas Transport and Storage System] pipeline system, the country’s only such integrated system.
Out of 10,336 kilometres that make up SISTRANGAS, around 8,990 are part of the SNG [National Gas Pipeline System] owned by CENAGAS. This means that around 87% of the pipelines in SISTRANGAS are owned by the Mexican State. There are also six private companies that are interconnected and form part of SISTRANGAS.
In terms of consumers, combined-cycle power generation plants in Mexico generate more than 50% of the country’s electricity. They also consume around 60% of Mexico’s natural gas to produce power. Naturally, these are today our largest gas consumers – the majority of which are owned by the state-owned CFE. The CFE is the company that consumes the largest share of the gas we distribute in-country and that is why synergies between ourselves and the CFE are critical.
With this new administration, we are witnessing a strong interconnection between Pemex, the CFE and CENAGAS, under the centralised lead of SENER [Secretariat of Energy]. Pemex is a major gas producer that injects natural gas into our pipeline system. For example, we have injection of gas produced offshore at two points on the east coast in the Gulf of Mexico from which Pemex pumps its gas directly from its processing facilities. Thus, Pemex, CENAGAS and the CFE are all aligned – Pemex being the gas producer, CENAGAS being the transporter and the CFE being the main consumer.

What plans does CENAGAS have to grow and modernise its pipeline network?
Mexico’s natural gas consumption is around 8.7 bcf [170 mcm] per day, from which 4.5 bcf [128 bcm] passes through our SISTRANGAS pipelines. However, the demand for natural gas is increasing rapidly. Accordingly, Pemex is determined to increase natural gas production in-country, which will mean an increase of gas injection into our pipelines. The high demand for more natural gas in Mexico has also created a need for pipeline expansion.
CENAGAS is working on pipeline expansion in a co-ordinated manner as it will depend on the CFE’s needs – especially to meet the demand of power plants. This will be part of our five-year growth plan, which will include the construction of new pipelines – for instance, small sections to meet the needs of new consumers and last-mile sections, as well as the maintenance and upgrade of existing and ageing infrastructure.
In the next six years, we will roll out a rehabilitation and modernisation programme for our entire gas pipeline and installation infrastructure. In 2025, we will invest MXN 17 billion-20 billion [USD 853 million-1 billion] to this end, carrying out important maintenance and upgrades to our pipelines. Investments will be made year-by-year. A great part of our existing network is above 40 years old to which we aim to have completed the rehabilitation of 70-75% of our entire network by 2030.
Likewise, the recently launched Plan Mexico has appointed 12 new industrial development parks which will urgently require natural gas to flourish. We are now planning to roll out this strategy to reach these parks with our pipelines.

How is CENAGAS implementing new technologies to enhance its operational efficiency?
At CENAGAS, we have a control centre that uses a SCADA system. We are currently updating all measurement devices and actuators to incorporate the latest technologies. We have invested around MXN 3 billion [USD 150.5 million] in modernising this system.
Supervising and analysing our operations are vital to ensuring the correct, efficient and safe functioning of our extensive infrastructure. Cameras, sensors and other technologies are placed at multiple control points, and maintaining continuous communication from these points to the control system is crucial. Monitoring the entire infrastructure requires uninterrupted connectivity. To ensure this, we are developing a parallel system using satellite technology as a backup.
Data management has also become central to our operations. As the volume of information we handle continues to grow, we have decided to expand our data storage centre. In parallel, we are implementing an advanced cybersecurity system to safeguard our information and operations from potential cyberattacks.
We are also introducing a drone-based aerial monitoring system. Drone inspections have improved significantly, allowing us to conduct more precise detections and inspections. For instance, criminals sometimes tap into our gas pipelines for huachicoleo [fuel theft] mistakenly believing they are crude pipelines. When they realise their error, they abandon the pipeline, often leaving it damaged. We aim to use drones to detect this damage. Drones can transmit information almost in real time, enabling us to respond swiftly and effectively. CENAGAS is committed to deploying this technology in the coming years.

Tell us about how CENAGAS is feeding the Isthmus of Tehuantepec Interoceanic Corridor (CIIT) with gas and its focus on underground gas storage.
The CIIT is a flagship project aimed at revitalising southern Mexico’s logistics and industrial sectors. Expanding gas pipeline infrastructure has been prioritised to support this development, which will feature 10 industrial parks. For instance, development plans around Coatzacoalcos extend across 15 kilometres, and we are already supplying gas to this new industrial hub. The aim is to meet the natural gas demand for these industrial parks through pipeline infrastructure and gas stations. Gas storage solutions are also being considered in the region.
CENAGAS is analysing a major gas storage plan. There are strategic locations where underground natural gas storage could be viable. This approach would help mitigate backup issues such as those experienced during the winter of 2021, when natural gas supply from the United States was disrupted. CENAGAS has proposed four technically viable underground storage projects across the country.
Underground storage offers significant advantages over traditional sphere storage. It allows for much larger storage volumes – up to 500 times greater than sphere storage. Additionally, underground storage is more cost-effective as it avoids the need to liquefy and regasify the gas, which is necessary for sphere storage. While underground gas storage presents a promising solution for the near future, it remains under evaluation.

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