Mexico Must Incentivize Domestic Natural Gas Production, Regulator Says

Mexico must incentivize domestic production of natural gas in order to reduce its dependence on imports from the United States, according to one of Mexico’s top oil and gas officials.

Hector Moreira, a commissioner with upstream regulator Comisión Nacional de Hidrocarburos (CNH), spoke with NGI’s Christopher Lenton, senior editor for Mexico and Latin America, on the latest episode of the Hub and Flow podcast.

Moreira was appointed to CNH under Mexico’s previous government, which implemented a massive market-opening reform of the energy sector.

Oil economics have historically driven upstream investment in Mexico, with oil development still offering a higher return on investment than gas-directed drilling, Moreira said. “But Mexico must do something in terms of…tax...