Mexico Unveils $7.2 Billion Natural Gas Pipeline Modernization Plan
Mexico plans to invest more than $7.2 billion in new natural gas pipelines, compression upgrades and network modernization projects through 2030.
(P&GJ) — Mexico is moving forward with a massive natural gas infrastructure expansion program valued at more than MX$140 billion ($7.2 billion), according to reporting from Mexico Business News. The initiative includes new pipelines, compression upgrades and modernization work across the country’s existing gas transmission system.
The investment plan, presented by Energy Minister Luz Elena González, is designed to support Mexico’s growing power generation needs and strengthen long-term energy reliability as electricity demand continues rising. The program is tied directly to the development of 13 new combined-cycle power plants expected to enter service during President Claudia Sheinbaum’s administration.
Under the proposal, the Federal Electricity Commission (CFE) will invest roughly MX$53.8 billion ($2.75 billion) in nine pipeline projects intended to supply gas to new power plants across northern, central and southeastern Mexico. Meanwhile, CENAGAS plans to invest approximately MX$87 billion ($4.45 billion) in additional pipeline construction, compression station upgrades and maintenance work across the country’s 21,149-km (13,141-mile) transmission network.
Among the larger projects is the Naco-Hermosillo-Guaymas pipeline in Sonora, which is expected to transport up to 3.2 billion cubic feet per day of natural gas and could help ease supply constraints tied to future LNG export developments in northwest Mexico. Another project, the Libramiento Reynosa pipeline in Tamaulipas, is nearing completion and is expected to enter service in June 2026, according to the report.
Officials said the modernization effort is also aimed at improving reliability across aging infrastructure that was previously transferred from Pemex to CENAGAS. As reported by Mexico Business News, the maintenance portion of the program includes upgrades to compression stations, rehabilitation projects and technology improvements intended to strengthen system operations ahead of growing summer electricity demand.