Winter storm underlines Mexico’s worrying gas dependence

MXPE Weekly Essentials ft. an offering of scalps to Trump, Mexico’s export prowess, and other highlights in Mexican politics, policy, and markets from the past week.

MXPE Weekly Essentials. Only the most important news in Mexican politics, policy, and markets from the past week.

Last week’s highlights:

• Fear of being left in the cold—As a massive winter storm hit the US, worries about supply pushed natural gas prices up across Mexico—over 75% at time of writing. Though experts think it won’t be the case, there are also worries about the possibility that Texas could shut off the flow of gas entirely, as it did briefly in 2021 during a similar weather event.
  Mexico’s dependence on US gas has doubled in the five years since. Over 60% of Mexico’s electricity is generated by natural gas-powered plants, importing about 70% of its gas, of which 90% comes from the Texan Permian Basin. The Mexican government is now investing in previously frowned upon practices—like fracking—to increase domestic gas production.