1. No category

Mexico: Highlights
MEXICO
USA
TOTAL POPULATION: 112.3 MILLIONS1 309.3 MILLIONS GDP: USD $1,039 MILLON 2 USD $14,582 MILLION2 8TH PLACE IN NATURAL GAS WORLD
CONSUMPTION 3,029 BCF 3
13
PLACE IN NATURAL GAS WORLD
PRODUCTION 2,051 BCF 3
TH
35TH PLACE IN NATURAL GAS WORLD
PROVED RESERVES 12.3 TCF 3
ELECTRICITY PRODUCTION FROM FOSSIL FUELS - NATURAL GAS (2012)4
RUSSIAN
COUNTRY
USA
FEDERATION
JAPAN
IRAN
MEXICO
ITALY
EGYPT
SAUDI
ARABIA
TWH
1265
525
397
170
151
129
125
121
THAILAND KOREA
112
117
REST OF THE
WORLD
WORLD
1988
5100
Source: INEGI. Census of Population and Housing, 2010 Basic Questionnaire.
World Bank.
3 Source: Bp Statistical Review of World Energy June 2015. http://www.bp.com/content/dam/bp/pdf/Energy-economics/statistical-review-2015/bp-statistical-review-of-world-energy-2015-full-report.pdf
4. Source: Iea.org, Key World Energy Statistics 2014.
1
2 Source:
Natural gas consumption by sector
Consumption Distribution By Sector (August 2015)
COMMERCIALS
352
SELF-GENERATION
141
3%
7%
Pemex Exploración y Producción
ELECTRICITY
1,410
26%
40%
7%
17%
DISTRIBUTORS
388
SOURCE: BDI, SEPT 2015
INDUSTRIAL
894
PEMEX
2,159
1,262
Pemex Refinación
390
Pemex Gas y Petroquímica Básica
187
Pemex Petroquímica
320
Industrial demand of natural gas &
manufacturing GDP growth
•  In the last decade , the growth of natural gas consumption in the industrial sector has shown an annual average
growth of 5.4 percent, well above the 1.9 percent rate that obtained the manufacturing GDP figure the same
period
Industrial Demand (MMcfpd)
Manufacturing GDP (Billion Pesos 2008)
16.38
15.50
8.5
8.42
4.5
2006
2.57
1.0
2007
10.16
7.11
4.6
4.59
4.1
3.7
1.0
-1.0
2008
-1.30
4.98
2009
2010
-8.4
-11.08
2011
2012
2013
2014
1.8
2015
Estimate trends for mexican industrial
demand of natural gas
3,000
2,500
MMcfpd
2,000
1,500
1,000
500
Industrial
2013
1,240
2014
1,366
2015
1,590
Source: SENER “Prospectiva de gas natural y gas LP 2014-2028”
2016
1,713
2017
1,804
2018
1,910
2019
1,973
2020
2,033
2021
2,100
2022
2,166
2023
2,234
2024
2,304
2025
2,383
2026
2,462
2027
2,546
2028
2,630
Natural gas forecast demand in Mexico
MMCFPD
14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2015 2016 2017 2018 2019 2020 Pemex producAon Source: SENER “Prospectiva de gas natural y gas LP 2014-2028”
2021 2022 Imports -­‐ exports 2023 2024 Total Demand 2025 2026 2027 2028 Connecting Mexico with better markets
NGPL
REX
USA
Sásabe O
TETC
Tennesse
zone 4-300 Leg
San Isidro Samalayuca Puerto Libertad Henry Hub
El Encino Guaymas Agua Dulce
Colombia THE MEXICAN PIPELINE
Camargo El Oro Topolobampo La Laguna Durango Mazatlán EXPANSIONS ARE
GIVING THE
Escobedo Los Ramones POSSIBILITY TO
ACCESS IN CHEAPER
MARKETS IN THE U.S.
Zacatecas Altamira V. Reyes San Luis Potosí Naranjos Aguascalientes Tamazunchale Tuxpan Guadalajara Tula Apaseo el Alto NaAvitas Cempoala Huexca Lázaro Cárdenas JálApan Nuevo Pemex Ciudad Pemex Acapulco Salina Cruz Tapachula Current Interconections to the Mexican
Border
Firm Capacity
El PasoNaco
El PasoWilcox
North Baja
Interruptible capacity
OneOk/OkTex
Kinder Morgan
Texas
Net Mex
Pipeline
El Paso
Bajanorte
Kinder
Morgan
Border
Naco
Enterprise
Tetco
Cd. Juárez
Tarahumara
Rosarito
Camargo
GDCH
Hermosillo
Chihuahua
Net Mexico Pipeline (Texas)
Firm Capacity MMBtu
1,000,000
Kinder Morgan Border (Texas)
230,000
Kinder Morgan Texas (Texas)
525,000
Tennessee Gas Pipeline (Texas)
243,000
El Paso Natural Gas (Arizona)
10,661
El Paso Natural Gas (Texas)
54,790
Argüelles
Reynosa
Kinder
Morgan GN
México
Monterrey
Transport system
Tennessee
Río Bravo
Mier
Samalayuca
Tennessee
Reynosa
GDN
GDR
Est. Nº19
Río Bravo
Los Ramones
Gasoductos de
Tamaulipas
San Fernando
LNG
Related market prices
HYDROCARBONS*
CRUDE OIL (WTI, CUSHING OKLAHOMA NYMEX)
HEATING OIL (DIESEL, NYMEX NEW YORK HARBOR)
PROPANE (MONT BELVIEU, TX.)
NATURAL GAS (HENRY HUB, NYMEX)
FUEL OIL (HIGH SULFUR FUEL OIL, NYMEX)
GASOLINE (NYMEX)
ORIGINAL PRICES
$46.14 USD/BARRIL
$1.5 USD/GAL
$43.8USD/GALÓN
$2.5 USD/MMBTU
$212 USD/GAL
$1.27 USD/GAL
EQUIVALENT PRICES
$7.9 USD/MMBTU
$11 USD/MMBTU
$4.8 USD/MMBTU
$2.5 USD/MMBTU
$5.4 USD/MMBTU
$10.1 USD/MMBTU
USD/MMBtu
24.8
24
International prices
Mexico prices
11
7.9
10.1
7.9
7.5
5.4
4.8
2.5
Prices of Natural Gas
Crude Oil Information as of Oct 19, 2015
*Reference Prices
HeaAng Oil Propane Natural gas Fuel oil Elaborated by Pemex Gas y Petroquímica Básica using Thomson Reuters prices.
Gasoline Natural gas international prices
Prices as October 14th 2015
(USD/MMBtu)
$6.04/6.02 $ 2.52/2.52 Nymex Henry Hub Dutch TTF $6.23/6.06 $2.57/2.58 UK NBP So Cal $6.64/6.68 Italian PSV EUROPA
$6.45/6.40 $6.65/6.60 Japón China ASIA
$ 5.37/3.50 Algonquin $2.45/2.46 $6.06/6.04 Germany EGT Reynosa $6.65/6.60 $7.16/7.16 Perú * Prices in green are from a previous week
Source: Elaborated by Pemex Gas y Petroquímica Básica using Platts International Gas Reports.
India $6.65/6.60 Corea del Sur Net exports from us to Mexico
(2014-2015) PGPB only
NET EXPORTS 2014-2015 (MMBTU/D)
2014
2015
1. WESTTEXAS
299,339
45,940
2. SOUTH TEXAS
979,800
1,227,949
WEST TEXAS
2014
WEST TEXAS, AZ. CALIF.
2015
MMBTU/D
SOUTH TEXAS TRANSPORTATION
SOUTH TEXAS (MMBTU/D)
2014
2015
TENNESSEE (1999)
215,398
67,652
K.M. BORDER (2000)
216,192
173,816
SAMALAYUCA
89,718
0
CHIHUAHUA-CDJ
117,965
38,796
K.M. TEXAS (2003)
422,316
452,441
NACO
34,801
7,144
TENNESSEE RB (2003)
73,768
0
NORTE II
56,855
0
TETCO (~ 1950)
41,818
2,712
0
0
NET (2014)
10,308
531,328
299,339
45,940
979,800
1,227,949
NORTH BAJA
TOTAL:
Source: BDI, Sept 2015.
TOTAL:
Net exports from US to Mexico (2014 - 2015)
PGPB only
MMBTu/day
2015
2014
1,422,843
1,324,219
1,318,019 1,285,747 1,286,183
1,208,740
1,139,254
1,108,041
1,168,491
1,368,500
1,488,615
1,486,642
1,447,268
1,402,086
1,424,591 1,380,998
1,307,756
1,270,997
1,051,378
1,133,078
1,011,832
NET AVERAGE EXPORTS 2014 – 2015 (MMBTU/D)
Ene
Jan
* Jan-Sep 2015
Feb
Mar
Abr
Apr
2014
2015*
1,279,139
1,273,889
May
Jun
Jul
Ago
Aug
Sep
Oct
Nov
2014 2015 Dic
Dec
Source: BDI 2015 September
Natural gas transport infrastructure
2015
5,825 MILES OF NATURAL GAS PIPELINES1
i
i
LNG
Ensenada
Tucson i
Sásabe
15 COMPRESSION STATIONS:
- 402,115 HP
- 265,725 HP: PEMEX GAS
- 136,390 HP: PRIVATES
i
i
i
Gloria a Dios
Naco
El
Sueco
5,0122 MMCFPD TRANSPORT CAPACITY IN THE NGS
(NATIONAL GAS SYSTEM) AND 90 MMCFPD IN NACO
– HERMOSILLO PIPELINE.
i
Guaymas
Kinder Morgan
i
i
Chávez
Los
Ramones
Zacatecas
Aguascalientes S.L.P.
i
i
1
2
PRIVATE PIPELINES
PEMEX GAS PIPELINES
PEMEX GAS IMPORTS
PRIVATE IMPORTS
PEMEX GAS COMPRESSION STATION
PRIVATE COMPRESSION STATION
Guadalajara
Valtierrilla
i
LNG
Manzanillo
GDT
Altamira
i LNG Altamira
Tamazunchale
El Sauz
Tejas Gas
Mayakan
Source: Memory tasks 2012 (9,038 km). It includes Jáltipan Salina Cruz 12” pipeline and Los Ramones Project Phase I, which will provide 71.46 miles in December 2014.
Reference: Capacity in accordance with Resolution 204 of 2010 of the Energy Regulatory Commission.
Natural gas infrastructure projects
2015-2019
Sásabe
5
1
Pipelines
1. San Isidro- Samalayuca (CFE)
2. Sur de Texas – Tuxpan (submarino) (CFE)
3.  Tula – Villa de Reyes (CFE)
4.  Tuxpan – Tula
(CFE)
5.  Samalayuca – Sásabe
(CFE)
6.  Colombia – Escobedo
7.  Jáltipan – Salina Cruz (PEMEX)
8.  Los Ramones – Cempoala
9.  Villa de Reyes - Ags. – Guadalajara (CFE)
10.  La Laguna – Aguascalientes (CFE)
11.  Lázaro Cárdenas – Acapulco
12.  Salina Cruz – Tapachula
San Isidro
Samalayuca
Puerto Libertad
El Encino
Guaymas
Colombia
6
Camargo
El Oro
La Laguna
Topolobampo
Escobedo
Los Ramones
Durango
LNG regasification terminals
Pipelines in operation
Concluded Pipelines (2013/2014/2015)
Mazatlán
2
10
Zacatecas
San Luis Potosí
Aguascalientes
8
Tamazunchale
3
9
Guadalajara
Altamira
V. Reyes
4
Naranjos
Tuxpan
Tula
Apaseo el Alto
Nativitas
Pipelines in construction (2015/2016)
Pipelines included at “Plan Quinquenal”
Compression Station “El Cabrito”
Cempoala
Huexca
11
Lázaro
Cárdenas
Acapulco
Ciudad Pemex
Jáltipan
Nuevo Pemex
7
Salina
Cruz
Source: SENER. Plan Quinquenal de Transporte y Almacenamiento Nacional Integrado de Gas Natural 2015-2019.
12
Tapachula
Natural gas infrastructure projects
2015-2019
Project Sponsor Es>mated Es>mated Lenght Investment date of (kms) (MMUSD) Bidding Es>mated Opera>onal Date 1 San Isidro -­‐ Samalayuca CFE 23 109* 2015 2017 2 Sur de Texas – Tuxpan (submarino) CFE 800 3,100 2015 2018 3 Tula – Villa de Reyes CFE 295 420 2015 2017 4 Tuxpan – Tula CFE 263 400 2015 2017 5 Samalayuca – Sásabe CFE 650 571* 2015 2017 6 Colombia – Escobedo To be define 300 N/A 2016 2018 7 JálApan – Salina Cruz PEMEX 247 643 2015 2017 8 Los Ramones – Cempoala To be define 855 1,980 2017 2019 9 Villa de Reyes -­‐ Aguascalientes – Guadalajara CFE 355 555 2015 2017 10 La Laguna –Aguascalientes CFE 600 1,000 2016 2017 11 Lázaro Cárdenas – Acapulco To be define 331 456 2016 2018 12 Salina Cruz – Tapachula To be define 440 442 2016 2018 PEMEX N/A 60 2015 2016 13 El Cabrito Compression StaAon *Amount of investment estimated by the winning bidder of the project
Firm export capacity of natural gas
from US to Mexico 2014-2016
2.520 1.988 1.974 1.588 Bcf/D MGS 1.115 CFE 0.300 2014 2015 2016 Energy reform
THE OPERATION OF PEMEX AS UNIQUE PRODUCER OF HYDROCARBONS IN THE COUNTRY HAS BEEN MODIFIED BY A NEW
MODEL OF OPEN COMPETITION:
PEMEX BEFORE
(OLD MODEL)
PEMEX NOW
(NEW MODEL)
DECENTRALIZED PUBLIC ENTITY
§  PRODUCTIVE COMPANY OF THE STATE (PEMEX).
§  PRODUCTIVE SUBSIDIARIES ENTITIES (PEP, TRI & LOGISTICS).
RESOURCE MANAGER
§  COMPETITIVE COMPANY WHOSE PURPOSE IS TO CREATE
ECONOMIC VALUE.
RESPONSIBLE OF SUPPLY
ASSURANCE
§  MARKET SHAREHOLDER.
§  SENER IS ON CHARGE OF ENERGY SECURITY, IN SUPPLY
MATTERS.
PERMIT REGIME FOR SOME
§  PERMIT REGULATION FOR ALL ACTIVITIES OF THE VALUE
CHAIN.
ACTIVITIES
New Business Models - Downstream
PEMEX has developed successful strategic alliances in downstream activities.
GAS PIPELINES
JOINT VENTURES
PEMEX’S
PARTICIPATION
COMPANY
OBJECTIVE
El Paso Natural Gas (1997)
Sempra Energy (2010)
(partner)
NET (partner)
Kinder Morgan/
Mitsui (partners)
NATURAL GAS AND LPG
TO DEVELOP
TO DEVELOP
INFRASTRUCTURE PROJECT
“LOS RAMONES II NORTH AND
TO DEVELOP
TRANSPORTATION TO POWER
PLANTS IN THE NORTHERN
INFRASTRUCTURE
PROJECT “AGUA DULCE-
SOUTH”
FRONTERA”
INFRASTRUCTURE
PROJECT “TUCSON-
2013
2013
REGION OF
OPERATIONS
STARTUP
MGS & MGE (subsidiaries) /
GCh (investee) / GDF Suez
(partner)
MEXICO
1997
SÁSABE”
2013
Conclusions
•  PEMEX, as a Productive State Enterprise aims to maximize economic value and profitability
for the Mexican state, by improving its productivity to maximize oil and gas revenues and
contribute to national development.
•  PEMEX operation as the only producer of hydrocarbons in the country has changed by a new
model of open competition.
•  PEMEX can take advantage of the opportunity to establish new legal framework with strategic
partners to consider alliances or joint ventures.