Mexico's energy minister Sener has called on the state-owned pipeline manager, Cenagas, to propose new projects to expand the nation's gas storage capacity and connect to privately developed pipelines to meet the country's growing natural gas demand. 

Cenagas, which oversees Mexico's 10,336-kilometer natural gas pipeline network, Sistrangas, is expected to submit its proposals to Sener for approval. 

The move aims to help cope with a steady increase in Mexico's gas demand, which will average 1.27% annually from 2024 to 2029, according to the ministry’s forecasts.

In its annual review of the Sistrangas expansion plan, Sener emphasised the need for additional gas storage facilities to mitigate supply risks from the United States, which currently accounts for 70% of Mexico's gas imports. 

The ministry also suggested connecting Sistrangas to privately developed pipelines like the Southeast Gateway and Cuxtal II, designed to address energy shortages in Mexico's southeastern region.

Cenagas is currently investing in several projects to expand its network's capacity. The most significant, the $129 million Reynosa bypass pipeline, is expected to begin operations in July 2025. 

The project will connect Sistrangas to the Texas Eastern Transmission Pipeline Company (TETCO) and Tennessee Gas Pipeline, increasing gas supply to northern Mexico.