Naturgy natural gas: Key energy for industrial competitiveness

Natural gas is a fundamental fuel in industrial development due to its multiple advantages in terms of efficiency, cost, and lower environmental impact compared to other fossil fuels. Its versatility and high energy content make it an attractive option for a wide range of industrial applications, from heat and electricity generation to the production of chemicals and materials manufacturing.

Globally, significant reserves of natural gas are found in countries such as the United States, Russia, Iran, and Qatar. In Mexico, the relevance of this fuel in the energy matrix has grown significantly in recent years, averaging a competitive price of 2 USD/MBTU compared to 9 USD/MBTU in the European market, making it an attractive alternative for production sectors.

The opportunity to switch to a more competitive fuel has not been overlooked by the country. According to data from the Ministry of Energy (SENER), as of 2022, the average consumption of natural gas in Mexico is 8.3 billion cubic feet per day (bcfd).

Increased consumption presents a significant challenge in supplying natural gas. In this regard, Naturgy, a leading company in the energy sector, has played a crucial role in developing the necessary infrastructure for the transport, distribution, and commercialization of this resource since its arrival in the country over 25 years ago.

With the expansion of pipeline infrastructure and the capacity to import natural gas, the current energy demand has been met, thereby reducing dependence on more expensive and polluting fuels. For the industrial sector, this represents an opportunity to modernize and transform production processes, reducing the risk of supply interruptions to ensure continuous operation.

Energy Needs of the Industrial Sector

In 2022, the National Council of Science and Technology (CONACYT) concluded that in Mexico, the industrial sector is the second-largest energy consumer, accounting for 33.4%, where fossil fuels are the most common energy source, and thermal uses dominate industrial applications. However, fuels like oil or coal currently face numerous challenges in terms of efficiency, sustainability, and costs.

This situation has led to the rise of natural gas, a more competitive and environmentally friendly energy source that allows the industrial sector to transition towards a greener future without compromising its operations. While all fuels can exhibit some price volatility, natural gas tends to maintain greater economic stability compared to investments in other fuels. This gives industries the ability to project their operational expenses more accurately over the long term.

In terms of cost-effectiveness, natural gas stands out compared to other fuels due to its lower price per unit of energy, reduced environmental emissions and higher safety in handling. This combination allows for a more significant contribution to mitigating climate change.

Natural Gas: The Ally of Nearshoring

In a highly challenging global environment, supply chains seek to increase their competitiveness by optimizing processes. This often requires implementing new strategies such as nearshoring, where companies relocate their operations to reduce costs, improve yields, and adapt to the constant changes in the international market.

In the context of nearshoring, Mexico positions itself as a strategic destination due to its geographical proximity to the United States, favorable trade agreements, and competitive costs in labor, services, and resources like natural gas. According to El Economista, in 2024 alone, Foreign Direct Investment (FDI) reached a record high of 20,313 million dollars in the first quarter of the year, growing by 9% compared to 2023.

Despite the opportunities for progress in the country, relocating industrial operations is not a simple process and requires an in-depth analysis of competitiveness and risk through the following key factors: labor, legal framework, economic stability, and of course, infrastructure. This infrastructure is evaluated from two perspectives: the logistical infrastructure necessary for access to the target market (including roads, railways, airports, and customs) and the infrastructure required for the installation and operation of the project (such as land, water, electricity, and gas). In this aspect, the availability of a safe and efficient energy source like natural gas is a determining factor for companies to consolidate in the territory.

For Mexico, the foreign investment of new industries means greater development in commercial activity and, therefore, national economic growth. However, it also presents challenges in terms of energy consumption and infrastructure, especially in high-demand industrial sectors such as metalworking, automotive, and technology.

In this scenario, industrial clients need a supply that guarantees the continuity of their operations. For this reason, Naturgy, through a 23,000 km gas pipeline network, supplies large industries with reliable energy at a competitive price.

Naturgy Boosts Industrial Competitiveness

Naturgy serves over 2,000 industrial clients, addressing their needs with a wide range of energy solutions aimed at optimizing their operational costs, improving productivity, and reducing their environmental impact.

Through a specialized area, Naturgy offers comprehensive process evaluation, technical and energy analysis, engineering development, permits and procedures, equipment and materials, civil, electrical, and mechanical work installation, as well as training, commissioning, and preventive/predictive maintenance of projects that are technically and economically viable.

Additionally, with a strong presence in over 50 industrial parks located in the Northern and Bajío regions of Mexico, Naturgy positions itself as the ideal partner for manufacturing and nearshoring, ensuring that industries have access to high-quality energy solutions to enhance their competitiveness.

For more information, contact contratacionggcc@naturgy.com or visit naturgy.com.mx.