LNG, Natural Gas
December 04, 2023
Platts to revise Mexico natural gas transportation costs and locations
Platts, part of S&P Global Commodity Insights, will revise transportation cost calculation methods for its Mexico natural gas indices, effective Jan. 2, 2024. Platts will also change the methodology for all the Mexico natural gas locations.
This decision follows a proposal subscriber note which can be found here:
The revised transportation costs will 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 include transportation costs for domestic production and LNG imports.
Platts will publish the pipeline segments of each supply route for all locations to increase transparency. The transportation costs for each location will reflect the average cost of the supply routes for each location.
The supply routes for each location will be as follows:
| Mexico Location | Rosarito | Aguascalientes | Aguascalientes |
| Source Location | SoCal Gas | Tennessee, zone 0 | Tennessee, zone 0 |
| Segment #1 | North Baja | Roadrunner | Tennessee Gas Pipeline |
| Segment #2 | Gasoducto Rosarito | Tarahumara | SNG Zone 3 - Zone 6 |
| Segment #3 | El Encino-La Laguna | ||
| Segment #4 | La Laguna-Aguascalientes | ||
| Segment #5 |
| Mexico Location | Tula | Valtierrilla | Los Ramones - Monterrey |
| Source Location | Tennessee, zone 0 | Tennessee, zone 0 | Tennessee, zone 0 |
| Segment #1 | Tennessee Gas Pipeline | Tennessee Gas Pipeline | Tennessee Gas Pipeline |
| Segment #2 | Valley Crossing | SNG Zone 3 - Zone 6 | NET Mexico |
| Segment #3 | Sur de Texas - Tuxpan | Los Ramones I | |
| Segment #4 | Tuxpan-Tula | SNG Zone 3 - Zone 3 | |
| Segment #5 |
| Mexico Location | Villa de Reyes | Villa de Reyes | Reynosa |
| Source Location | Tennessee, zone 0 | Tennessee, zone 0 | Tennessee, zone 0 |
| Segment #1 | Tennessee Gas Pipeline | Tennessee Gas Pipeline | Tennessee Gas Pipeline |
| Segment #2 | NET Mexico | SNG Zone 3 - Zone 5 | SNG Zone 3 - Zone 3 |
| Segment #3 | Los Ramones I | ||
| Segment #4 | Los Ramones II North | ||
| Segment #5 |
| Mexico Location | El Encino | El Encino | El Encino |
| Source Location | Waha | Waha | Waha |
| Segment #1 | Roadrunner | Trans-Pecos | Tennessee Gas Pipeline |
| Segment #2 | Tarahumara | Ojinaga - El Encino | SNG Zone 3 - Zone 1 |
| Segment #3 | |||
| Segment #4 | |||
| Segment #5 |
| Mexico Location | Juarez | Sierrita | Topolobambo |
| Source Location | Waha | Waha | Waha |
| Segment #1 | El Paso Natural Gas | El Paso Natural Gas | Trans-Pecos |
| Segment #2 | SNG Zone 1 - Zone 1 | Sierrita | Ojinaga - El Encino |
| Segment #3 | El Encino-Topolobampo | ||
| Segment #4 | |||
| Segment #5 |
| Mexico Location | Merida | Ciudad Pemex | Puente Moreno |
| Source Location | Tennessee, zone 0 | Tennessee, zone 0 | Tennessee, zone 0 |
| Segment #1 | Tennessee Gas Pipeline | Tennessee Gas Pipeline | Tennessee Gas Pipeline |
| Segment #2 | Valley Crossing | Valley Crossing | SNG Zone 3 - Zone 7 |
| Segment #3 | Sur de Texas - Tuxpan | Sur de Texas - Tuxpan | |
| Segment #4 | SNG Zone 6 - Zone 8 | SNG Zone 6 - Zone 8 | |
| Segment #5 | Energia Mayakan Merida |
| Mexico Location | Tuxpan | Guadalajara |
| Source Location | Tennessee, zone 0 | Waha |
| Segment #1 | Tennessee Gas Pipeline | Roadrunner |
| Segment #2 | Valley Crossing | Tarahumara |
| Segment #3 | Sur de Texas - Tuxpan | El Encino-La Laguna |
| Segment #4 | La Laguna-Aguascalientes | |
| Segment #5 | Villa de Reyes-Aguascalientes-Guadalajara |
The transportation rates will 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 |
Additionally, Platts will make the following Mexico natural gas methodology changes:
Baja Region:
| Location | Existing Methodology | New 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 | New 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 | New 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 | New 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 Nuevo 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 | New 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 | New 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 | New 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 | New 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.