Canadian Business Coalition Advocates for Enhanced Pipeline Development in Mexico

The head of Canada’s Business Council suggests that Canadian firms coudl play a crucial role in helping Mexico tap into its own natural gas resources and reduce its heavy reliance on imports from the United States.

Historically known for its oil production prowess, Mexico has seen its domestic natural gas output lag behind demand while increasingly turning to U.S. sources—primarily from texas—for supply.

Citing opportunities for investment in Mexican energy during a meeting with President Claudia Sheinbaum at the G7 summit in Kananaskis, Alberta, Goldy Hyder emphasized that diversifying energy sources is vital for Mexico’s future.Executives from major pipeline companies like Atco and TC Energy were also present at this discussion.

“It’s essential for Mexico to broaden its energy portfolio,” Hyder noted. “Canada can assist significantly as we have ongoing projects that will enhance energy security by utilizing local resources.”

Pemex (petroleos Mexicanos), the state-owned oil giant, has faced challenges in ramping up domestic natural gas production over recent years.The increasing network of pipelines has led to a dramatic rise in dependency on imported gas since around 2008 when shale extraction became prominent across the border; now more than 70% of Mexico’s fuel needs are met through these imports.

Recent Developments

Soon after her meeting with business leaders on June 16th and prior to her scheduled discussion with Canadian Prime Minister Mark Carney on June 17th, Sheinbaum was set to engage with former U.S. President Donald Trump—an encounter that ultimately fell through due to his unexpected return home.

The previous management under Andres Manuel Lopez Obrador aimed at reducing foreign fuel dependency while enhancing local refining capabilities—a strategy Sheinbaum continues but now includes reforms encouraging private sector partnerships with Pemex.

“We possess both technological expertise and capital investment capabilities,” Hyder added during discussions about fostering foreign investments into mexican energy sectors.
“The goal is clear: we wont you not just relying solely on one source for your energy needs.”

Pemex faces significant hurdles as it grapples with declining output levels alongside an enormous debt estimated at $100 billion; though, collaborations with private entities could provide much-needed support if backed by government initiatives.
In August last year alone, data indicated that over 7 billion cubic feet per day were imported from the U.S., highlighting this critical issue further!

A notable project underway involves TC Energy’s Southeast Gateway Pipeline—a venture expected soon to transport up to 1.3 billion cubic feet daily from Texas directly into southern regions of Mexico.
This collaboration between TC Energy and Comision Federal de Electricidad aims not only at transitioning power plants away from oil but also towards cleaner-burning natural gas alternatives!

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