Gas in Mexico: Tariff, infrastructure affect strategies
✍ Scribed by Quinn, Michael J.
- Book ID
- 102844143
- Publisher
- John Wiley and Sons
- Year
- 2007
- Weight
- 983 KB
- Volume
- 13
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
✦ Synopsis
n existing, government-owned, gas pipeline infrastructure can be an incredibly valuable asset. While pipelines are enormously expensive to build, once constructed they are relatively inexpensive to operate. Mexico already has a large pipeline network reaching much of the country. Gas industry reforms in Mexico have the potential to maximize the value of this asset. Reforms can provide open access to gas users on terms that will allow customers to determine optimal usage in a market-based way. Ultimately, customers will hold firm capacity rights and have the choice of using their capacity or trading those rights to a user who values them more.