Platts to revise Mexico natural gas transportation costs and locations

Platts, part of S&P Global Commodity Insights, seeks feedback on a proposal to revise transportation cost calculation methods for its Mexico natural gas indices, effective Jan. 2, 2024.

Platts also proposes to change the methodology for all the Mexico natural gas locations.

The proposed revised transportation costs would reflect the cost to transport natural gas from selected US border locations to the locations in Mexico.

Currently, the transportation costs reflect the cost to transport natural gas from selected US border locations to the locations in Mexico, and includes transportation costs for domestic production and LNG imports.

Platts would publish the pipeline segments of each supply route for all locations to increase transparency. The transportation costs for each location would reflect the average cost of the supply routes for each location.

The proposed transportation rates would be as follows:

Location	Full Cost	Fixed Cost	Variable Cost
Juarez	$0.52	$0.45	$0.07
Reynosa	$0.42	$0.38	$0.04
Rosarito	$0.20	$0.16	$0.04
Sierrita	$0.86	$0.81	$0.05
El Encino	$0.56	$0.52	$0.04
Los Ramones-Monterey	$0.73	$0.68	$0.05
Puente Moreno	$1.27	$1.23	$0.04
Villa de Reyes	$1.07	$1.03	$0.04
Ciudad Pemex	$1.96	$1.84	$0.12
Merida	$2.38	$2.26	$0.12
Tuxpan	$1.02	$0.93	$0.09
Guadalajara	$1.11	$1.09	$0.02
Tula	$1.48	$1.39	$0.09
Aguascalientes	$1.15	$1.12	$0.03
Topolobampo	$1.08	$1.00	$0.08
Valtierrilla	$1.35	$1.31	$0.04

For comparison, the existing transportation rates are as follows:

Location	Full Cost	Fixed Cost	Variable Cost
Juarez	$0.52	$0.44	$0.08
Reynosa	$0.52	$0.47	$0.05
Rosarito	$0.25	$0.21	$0.04
Sierrita	$0.86	$0.81	$0.05
El Encino	$0.62	$0.52	$0.10
Los Ramones-Monterey	$0.59	$0.50	$0.09
Puente Moreno	$0.56	$0.53	$0.03
Villa de Reyes	$0.77	$0.74	$0.03
Ciudad Pemex	$0.18	$0.15	$0.03
Merida	$0.67	$0.64	$0.03
Tuxpan	$0.76	$0.72	$0.04
Guadalajara	$0.77	$0.74	$0.03
Tula	$0.78	$0.74	$0.04
Aguascalientes	$0.64	$0.61	$0.03
Topolobampo	$0.70	$0.69	$0.01
Valtierrilla	$0.77	$0.74	$0.03

Additionally, Platts proposes the following Mexico natural gas methodology changes:

Baja Region:

Location	Existing Methodology	Proposed Methodology
Rosarito	Deliveries off the Transportadora de Gas Natural Pipeline and the Rosarito Pipeline to end-users of natural gas in the industrial, power and distribution demand sectors in the Rosarito area.	Deliveries off the Gasoducto Rosarito pipeline system to end-users in the Rosarito, Baja California, area.

North Region:

Location	Existing Methodology	Proposed Methodology
El Encino	Deliveries near the city of El Encino, Chihuahua from the Tarahumara, Ojinaga -- El Encino, and Sistrangas pipelines to end-users of natural gas in the industrial, power and distribution demand sectors and to the El Encino-Mazatlan (Topolobampo) and El Encino-La Laguna (Wahalajara) pipeline systems.	Deliveries near the city of El Encino, Chihuahua from the Tarahumara, Ojinaga-El Encino, and Sistrangas pipelines to end users of natural gas in the industrial, power and distribution demand sectors and to the El Encino-Mazatlan (Topolobampo) and El Encino-La Laguna (Wahalajara) pipeline systems.
Juarez	Deliveries from Roadrunner Pipeline, Comanche Trail Pipeline, and San Isidro-Samalayuca Pipeline into the Tarahumara Pipeline and Sistrangas Pipeline in the state of Chihuahua.	Deliveries from El Paso Natural Gas pipeline via Sistrangas from Zone 1 to Zone 1.

Central Region:

Location	Existing Methodology	Proposed Methodology
Aguascalientes	Deliveries from the Sistrangas pipeline network to Bajio Pipeline in the state of Aguascalientes.	Deliveries from the La Laguna-Aguascalientes pipeline, including transportation charges on the Roadrunner, Tarahumara, and El Encino-La Laguna pipelines; or deliveries from the Sistrangas pipeline network in Zone 6, which includes transportation charges on Tennessee Gas Pipeline and Sistrangas Zone 3-6 rates.
Tula	Deliveries from the Sistrangas pipeline network to end users in the Tula region in the state of Hidalgo.	Deliveries from the Tuxpan-Tula Pipeline system in the Tula region within the state of Hidalgo; includes rates along the Sur de Texas-Tuxpan, Valley Crossing, and Tennessee Gas Pipeline systems.
Valtierrilla	Deliveries from the Sistrangas pipeline network to end users in the Valtierrilla region in the state of Guanajuato.	Deliveries from the Sistrangas pipeline network to end users in the Valtierrilla region in the state of Guanajuato; includes transportation rates on Tennessee Gas Pipeline and Cenagas Zone 3-Zone 6.
Villa de Reyes	Deliveries to and from the Los Ramones Pipeline and Sistrangas pipeline network at the interconnect of Villa de Reyes in the state of San Luis Potosi.	Deliveries to and from the Los Ramones Pipeline and Sistrangas pipeline network at the interconnect of Villa de Reyes in the state of San Luis Potosi; includes rates along Tennessee Gas Pipeline, NET Mexico, Los Ramones I, and Los Ramones II North, or includes rates along Tennessee Gas Pipeline and Sistrangas Zone 3-Zone 5.

Northeast Region:

Location	Existing Methodology	Proposed Methodology
Las Ramones-Monterrey	Deliveries to the Monterrey area in the state of Nuevo Leon from Los Ramones, Nueva Era, the Kinder Morgan Mier Monterrey pipeline, and the Sistrangas pipeline network.	Deliveries to the Monterrey area in the state of Nueva Leon; includes rates on Tennessee Gas Pipeline, NET Mexico, Los Ramones I, and Sistrangas Zone 3-Zone 3.
Reynosa	Deliveries from Texas Eastern Transmission and Tennessee Gas Pipeline into the Sistrangas pipeline network in the Reynosa area in the state of Tamaulipas.	Deliveries into the Sistrangas pipeline network near Reynosa in the state of Tamaulipas; includes transportation rates on Tennessee Gas Pipeline and Sistrangas Zone 3-Zone 3.

Northwest Region:

Location	Existing Methodology	Proposed Methodology
Sierrita	Deliveries from the Sierrita Gas Pipeline to the interconnect with Sasabe-Guaymas in the state of Sonora.	Deliveries from the Sierrita Gas Pipeline to the interconnect with Sasabe-Guaymas in the state of Sonora; includes transportation rates on El Paso Natural Gas and Sierrita Gas Pipeline.
Topolobampo	Deliveries into the Topolobampo region from the El Encino-Topolabampo and Guaymas- El Oro pipeline segments in the state of Sinaloa.	Deliveries into the Topolobampo region from the El Encino-Topolabampo pipeline in the state of Sinaloa; includes rates along the Trans-Pecos, Ojinaga-El Encino, and El Encino-Topolobampo pipelines.

Peninsula Region:

Location	Existing Methodology	Proposed Methodology
Merida	Deliveries from the Mayakan Pipeline into the Merida region in the state of Yucatan.	Deliveries from the Energia Mayakan Pipeline into the Merida region in the state of Yucatan; includes rates along Tennessee Gas Pipeline, Valley Crossing, Sur de Texas-Tuxpan, Sistrangas Zone 6-Zone 8, and Energia Mayakan.

South Region:

Location	Existing Methodology	Proposed Methodology
Ciudad Pemex	Deliveries from the Ciudad Pemex processing plant into the Sistrangas pipeline network in the state of Tabasco.	Deliveries to the Ciudad Pemex area in Sistrangas Zone 8; this location includes transportation charges along Tennessee Gas Pipeline, Valley Crossing, the Sur de Texas-Tuxpan pipeline, and Sistrangas Zone 6-Zone 8.
Puente Moreno	Deliveries from the Sistrangas pipeline network to end users in the Puente Moreno area in the state of Veracruz.	Deliveries from the Sistrangas pipeline network to end users in the Puente Moreno area in the state of Veracruz; includes rates along Tennessee Gas Pipeline and Sistrangas Zone 3-Zone 7.
Tuxpan	Deliveries from Sur de Texas-Tuxpan pipeline into the Sistrangas pipeline network in the Tuxpan region in the state of Veracruz. Also included are transport fees from the Altamira LNG facility.	Deliveries from Sur de Texas-Tuxpan pipeline into the Sistrangas pipeline network in the Tuxpan region in the state of Veracruz. This location includes transportation charges along Tennessee Gas Pipeline, Valley Crossing, and the Sur de Texas-Tuxpan pipeline.

West Region:

Location	Existing Methodology	Proposed Methodology
Guadalajara	Deliveries from the Sistrangas pipeline network to end users in the Guadalajara area. Also included are transport fees from the Manzanillo LNG facility.	Deliveries to end users in the Guadalajara area; this location includes transportation charges along Roadrunner Gas Transmission and the Tarahumara, El Encino-La Laguna, La Laguna-Aguascalientes, and Villa de Reyes-Aguascalientes-Guadalajara pipeline systems.

Platts will review and update if necessary the transportation rates on a quarterly basis, with the next review taking place in January 2024.

Platts will consider all comments received and will make comments not marked as confidential available upon request.

Please send any comments to AmericasGasPricing@spglobal.com and pricegroup@spglobal.com by Dec. 1, 2023.