Mexico’s state power utility CFE plans to develop a fuels storage policy in order to mitigate future gas supply shortages (such as those that triggered power outages across northern Mexico this week).

CFEnergia, which is CFE’s fuels division, will develop “a strategic commercial and operative storage policy that will minimise negative impacts of abrupt price movements and drastic variations in the volumes ordered by Mexico to generate electricity,” director Miguel Reyes said.

Shortages in natural gas supply following record cold weather in Texas sparked power outages across northern Mexico, affecting 4.7 million customers.

Mexico is heavily dependent on US pipeline imports for electricity generation as domestic gas production has declined over the past decade. Imports of 5.52 bcf/d covered 68 percent of consumption in November 2020, according to the latest government data. But the country has no storage facilities, leaving it vulnerable to operational disruptions, despite both the public and the private sector having flagged the issue for years.

CFE’s storage policy would “provide better operational flexibility” and “provide a protection mechanism in the face of price volatility,” CFE said.

CFE did not detail specific storage proposals or timelines or clarify if its programme will be in addition to the Cenagas proposals.

For more information visit

19th February 2021