“This year we are planning to invest more than 900 million pesos [$53 million] to expand our natural gas distribution network to be able to provide access to this transition fuel to more homes and businesses in cities and states where we have operations,” Felisa Ros, country manager of Engie Mexico, told NGI’s Mexico GPI.
“We will be developing a natural gas transport project which will be one of the most relevant and important undertakings of its kind in recent years, and we will also invest to grow biomethane production and its injection into our natural gas distribution networks,” she said.
Ros, who has been Engie’s Mexico country manager and head of operations since March of last year, also oversees the company’s South America hub that includes Chile, Peru and Brazil. In her more than 26 years at Engie, Ros has worked in Argentina, Peru, Mexico, Singapore and Houston. She has specialized in the distribution of natural gas, power generation, engineering, construction, and operations and maintenance.
Ros Holds a bachelor’s degree in civil engineering from the Universidad Nacional de Rosario, Argentina, and an MBA from the University of Phoenix.
Editor’s Note: NGI’s Mexico Gas Price Index, a leading tracker of Mexico’s natural gas market reform, offers the following Q&A column as part of a series of periodic interviews with market experts of natural gas in Mexico. Ros is the 118th expert to participate in the series.
NGI: What do you think the role of natural gas will be in the future of the Mexican energy mix in the next 15-20 years?
Ros: Natural gas will continue to be a crucial component of the Mexican energy matrix. In the more than 25 years that we have been in the country, we have witnessed the fuel’s role as a transition energy source. Natural gas is fundamental for the growth and development of Mexico, and currently we have a presence in 70% of the national territory with one of our portfolio of services. Our network of natural gas pipelines spans more than 13,700 kilometers, which contributes to an equilibrium between the need for reliable energy and the reduction of carbon emissions.
At the same time that Mexico advances towards using clean energy and renewable sources, natural gas will act as a pillar to guarantee stability and energy security. We always talk about the important alliance between the molecule and the electron, with gas acting as the link that will help us towards a greener energy matrix in the future.
NGI: What are Engie’s most important projects in Mexico currently?
Ros: Engie is committed to various significant projects in Mexico, including the development of natural gas infrastructure, renewable energy projects and the development of the production, distribution and sales operations of biomethane which is an innovative solution in Mexico. Our portfolio of projects in Mexico is varied; from the construction and operation of natural gas pipelines, to the operation of power generation plants for wind, solar and efficient cogeneration. These projects reflect our commitment to sustainability and innovation in the Mexican energy sector.
This year we are planning to invest more than 900 million pesos to expand on the natural gas distribution network to be able to provide access to this transition fuel to more homes and businesses in cities and states where we have operations. We will be developing a natural gas transport project which will be one of the most relevant and important undertakings of its kind in recent years, and we will also invest to start and develop biomethane production and its injection into our natural gas distribution networks.
NGI: What is the status of Engie’s Mayakán natural gas pipeline?
Ros: The development of the Mayakán pipeline is a key project for Engie in Mexico. This pipeline is essential to improve natural gas infrastructure in the southeast region of Mexico and will also double the supply of the fuel to provide people with a cleaner and more efficient energy source. We are working closely with the authorities and local communities to continue working to develop positive economic and social benefits in the southeast region of Mexico.
NGI: Where do you see growth opportunities in the Mexican natural gas industry?
Ros: The most significant growth opportunities in the Mexico natural gas sector include expansion of the current pipeline infrastructure as well as the integration of transition energy solutions in industrial sectors and in power generation. When we arrived in Mexico in 1997 in the state of Tamaulipas, we were confident that there would be clear advantages that would accompany the launching of a natural gas distribution network, including economic and social impacts. By developing this network, we have seen sustained growth potential that has fortunately been very fruitful.
Today, we have a presence in six regions of Mexico where there has been sustained social, industrial and economic growth, and for that reason, we are convinced at Engie that we will continue to have an important presence in the country. For Engie, Mexico is key and where we can contribute to the development of Mexico, we will be there.
The opportunities that are emerging because of nearshoring are a promising and relevant opportunity for Engie, as well as the development of the southeast region of the country and growth in states where we are already present and will continue to deliver clean and accessible energy to more and more people.
NGI: What do you think the Mexican energy sector must do to capitalize on the nearshoring opportunity?
Ros: To capitalize on the nearshoring opportunity, we need to strengthen and improve national energy infrastructure. This includes investment in transmission and distribution networks for both renewable and transition energies as well as for natural gas. If we can integrate more regions of the country and offer access to energy infrastructure that guarantees supply of energy and electricity services, it would create social and economic development opportunities in regions that are isolated or rural.
To be able to take advantage of these opportunities, companies must be attentive to trends in the market, to the needs of clients, to the regulations in the sector and technological innovations. At the same time, they must have a strategic vision, a capacity to adapt, and a social and environmental responsibility.
NGI: In your opinion, what are the most important challenges in the Mexican energy sector currently?
Ros: The challenges include the need to expand the current energy infrastructure, and the need to create a balance between economic development and environmental sustainability. Also, it’s crucial to promote the investment and innovation in the sector to maintain pace with changing energy demands. To be able to navigate and be successful in the face of these challenges, we will continue working with our clients to know and be apprised of the demands the market requires with a vision of energy efficiency and a continued diversification of the energy matrix.
NGI: What is Engie doing to continue to develop biogas and biomethane in Mexico?
Ros: Engie is actively exploring the development of biogas and biomethane in five regions of the country as part of our decarbonization strategy. These efforts are aligned with our global commitment to promote clean energy and sustainable solutions with the objective to be net zero by 2045. We see a significant potential in Mexico to produce biogas, which produces 254 MMBtu/y, the equivalent to being able to replace 9% of the total demand for natural gas in the country.
Biomethane has converted into a key energy source in the energy transition, decarbonization and circular economy and, as a result, one of the objectives Engie has for the country is to produce more than 3TWh of biomethane by 2030.
