Mexico faces legal hurdles for natural gas storage projects

Proposed natural gas storage projects in the depleted Brasil field in Tamaulipas and the JAF field in Veracruz are currently stalled due to legal and regulatory uncertainties. Energy specialist Gonzalo Monroy notes that Article 27 of the Mexican Constitution designates hydrocarbons in the subsoil as national property. This creates a conflict when private gas is injected into depleted fields, as it mixes with the remaining national gas, making it difficult to distinguish ownership for commercial purposes.

Mexico currently maintains only three days of natural gas storage capacity, significantly lower than countries like Spain, which holds 20 days. Experts suggest that while depleted fields and salt mines offer viable geological options for storage, the legal ambiguity regarding residual gas remains a primary barrier to infrastructure development.

Separately, the business sector has highlighted the high risk associated with mixed contracts in the hydrocarbon industry compared to the electricity sector. While Pemex has formalized 10 mixed contracts aimed at producing 39,500 barrels of liquid hydrocarbons and 102.6 million cubic feet of natural gas daily by 2026, investors face unique geological uncertainties that are not present in power generation projects.