The Centro Nacional de Control del Gas Natural (CENAGAS), is the operator of the Sistema de Transporte y Almacenamiento Nacional Integrado de Gas Natural (SISTRANGAS) and currently, the only shipper of the integrated systems, offering to the market integrated capacity and charging tariffs to the users.
In order to achieve its purpose, CENAGAS proposes and the Comisión Reguladora de Energía (CRE) approves the transportation rates for each tariff zone, as well as the terms and conditions that govern the provision of services.
With these tariffs charged for transportation services, the operator pays the different integrated systems for their respective revenue requirements, as well as their own management costs and, occasionally, the purchase of natural gas for the balancing of their systems.
The current General Director of CENAGAS, Lic. Elvira Daniel, declared in April 2019 that the Mexican Government is evaluating “to integrate more gas pipelines in the country" to convert said Center into a "national manager",consistent with the provisions of the Fourth Review of the Five-Year Expansion Plan of the SISTRANGAS, published in the last days of March by the Ministry of Energ y, where the intention will be to expand the SISTRANGAS to include the following projects:
It is interesting to evaluate what should happen for CENAGAS to be able to integrate the referred projects into SISTRANGAS. It is worth reiterating that the incorporation is voluntary, so one of the first steps will be to find incentives for pipeline developers to seek integration, either in tariff, energy security or operational efficiency. Under this framework, the driver of integration requires an analysis of the different feasible options in each case, with the understanding that integration is acceptable for gas pipelines as long as there are economic incentives for the developer, and is acceptable for CENAGAS if it represents systemic benefits (security, continuity, reliability, redundancy, etc.)
As Pemex once was the anchor shipper, now CFE integrates into the scheme being a feasible long-term counterpart for CENAGAS contracts, highlighting the need to evaluate the options and conduct studies, such as those that were made for the transfer of the contracts of Los Ramones Fase I of Pemex Gas and Petroquímica Básica to CENAGAS itself.
Parties interested in integration, need to build asolid case that includes, among others, pre-feasi- bility technical analyzes, a tariff proposal that considers the needs of the environment, a legal sequence in accordance with the regulatory framework and the understanding of bilateral relations that derive from integration, as well as a full understanding of the benefits and / or risks of the process.
The steps to continue with the integration plans would be the following:
David provides solutions for business development, regulatory compliance and feasibility analysis for natural gas and liquids projects. He has experience designing strategies to identify supply, demand and funding for infrastructure projects, including a deep feasibility analysis due to a profound understanding of the regulatory environment and the regional energy balances involved in each case, both for natural gas and liquid fuels.