Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Electric Power | Natural Gas

Mexico's CFE and Pemex scrap gas swap plan to supply Yucatan Peninsula, now seek an FRSU tender

Agriculture | Biofuels | Sugar | Coronavirus

Brazil's sugar and ethanol markets planning a post-pandemic strategy

LNG | Natural Gas | NGL

Platts LNG Alert

Capital Markets | Commodities | Electric Power | Natural Gas

Mexican Energy Conference, 24th

Electric Power | Natural Gas | Oil | Crude Oil | Refined Products | Shipping

Tropical Storm Cristobal closes ports in Mexico´s Bay of Campeche

Mexico's CFE and Pemex scrap gas swap plan to supply Yucatan Peninsula, now seek an FRSU tender


CFE receives 60-80 MMcf/d of Pemex's gas at Yucatan Peninsula

FRSU could be installed at the ports of Progresso, Pajaritos or Seybaplaya

Mexico City — Mexico's state power utility CFE is exploring the possibility of contracting an FRSU to ensure gas supply in the Yucatan Peninsula in the short to medium term, Miguel Reyes, director of CFEnergia, said Tuesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The plan to supply the Peninsula via gas swaps between state oil company Pemex and CFEnergia, CFE's fuel marketing arm, was scrapped, Reyes said in a press conference.

"Pemex's needs and priorities at the time are not over the swap, so it is off the table," Reyes said.

Now instead, both state companies along with the natural gas system operator are negotiating the rent of a floating, regasification, and storage unit, known as an FRSU, and hold consolidated LNG purchases, Reyes said.

At the sideline of the press conference, Reyes told S&P Global Platts that the three entities are evaluating whether to install the FRSU in the ports of Progresso, Seybaplaya or Pajaritos.

Under the previous administration of President Enrique Pena Nieto, Pemex had sought to auction the installation of an FRSU unit in the Port of Pajaritos as well as an LNG supply contract. However, the state company under President Andres Manuel Lopez Obrador canceled the tender in December.

The swap would exchange 240 MMcf/d of gas coming from TC Energy's 2.6 Bcf/d Sur de Texas-Tuxpan marine pipeline, known as STTP, with Pemex's production in its Southern Mexico processing plants.

Gas flowing via STTP cannot reach Southern Mexico due to a lack of compression capacity, making the plan not viable, Reyes said.

Currently, CFE is undergoing an arbitration process with TC Energy and its partner IEnova on force majeure contractual clauses and related fixed-capacity payments under such circumstances.

During the press conference, CFE General Director Manuel Bartlett said these negotiations would prevent the entrance in operation of STTP and other pipelines.


The Yucatan Peninsula is supplied via the 240 MMcf/d Mayakan pipeline, which sources gas from Pemex's gas processing centers in Tabasco State.

Mayakan is an isolated system disconnected from the rest of the country. Reyes said the entrance in operation of STTP would not solve gas shortages in the Peninsula.

According to Reyes, CFE's gas demand in the Yucatan Peninsula is 310 MMcf/d. However, it is currently receiving 60-80 MMcf/d from Pemex via a swap.

"What we are going to guarantee [gas supply] via this consolidated purchase, combining Pemex's needs and our own needs for the Peninsula for power generation," he added.

Meanwhile, to ensure power supply in the Yucatan Peninsula, CFE is supplying diesel to the Merida III combined-cycle gas turbine (CCGT) plant, allowing it to generate up to 440 MW, Carlos Morales Mar, CFE generation director, said at the conference.

Currently, Merida III is being supplied via trucks. However, the state utility expects to complete a fuel pipeline over the next month, ensuring a constant and reliable diesel supply into the facility, he added.

Meanwhile, the few gas deliveries CFE receives will be sent to the Valladolid CCGT plant, allowing it to generate up to 350 MW from this unit, Mar said

-- Daniel Rodriguez,

-- Edited by Pankti Mehta,