Mexico Sees Higher Electricity, Natural Gas Use In Next 15 Years

Mexico’s projected electricity consumption will increase by an average of 3.6% per year through 2024, requiring additional capacity of about 27,300 megawatts, the Energy Ministry said in a report Tuesday.

In order to keep up with demand, the government-run electricity sector will require 37,615 megawatts of new installed capacity, at an estimated investment of $91.3 billion, according to the ministry’s 15-year outlook for the industry.

The plan also foresees the retirement of 10,315 megawatts of existing capacity.

Consumption of natural gas during the same period is expected to increase by 2.8% annually to reach 11.2 billion cubic feet per day, most of which will be used by the electricity and oil industries.

Mexico’s production of natural gas is expected to increase at a slower rate, rising 2.3% a year on average to 8.7 billion cubic feet a day. The first production from deep-water deposits in the Gulf of Mexico is expected in 2013, according to the outlook.

Mexico will likely remain a net importer of natural gas throughout the 15-year period, with net imports rising to 2.5 billion cubic feet a day in 2024.

Imports of liquefied natural gas, or LNG, are projected to grow at a rapid pace, overtaking imports of natural gas via pipeline across the U.S.-Mexico border.

In 2010, Mexico expects LNG imports to rise to 586 million cubic feet a day from 367 million this year, and reach to 2.0 billion cubic feet a day by 2017.

Mexico has two LNG regasification terminals in operation, one on the Gulf coast and another on the Pacific coast. A second Pacific coast terminal is expected to go into operation in 2011.