Natural Gas Crisis: The Same With The Upgrading Of Mexico’S Power System

2021-02-19   |   by CusiGO

The first alarm came on Friday, February 12. But on the same morning, it was “dramatic.”. Manuel Bartlett, director general of the Federal Energy Commission, used the term to describe the beginning of an emergency that paralyzed Mexico’s power system for the next few days. Nearly five million people in the northern part of the country have been without electricity since Monday. According to the Department’s estimate, the blackout affected more than 2500 manufacturing plants, namely export processing plants, causing losses of nearly $3 billion. Everything is made up of a temporary. Low temperatures have frozen gas and power generation infrastructure across the border in Texas. The supply crisis pushed up prices and triggered a perfect storm.

The emergency has exposed the fragility of the grid, as president Andr é s Manuel L ó PEZ Obrador’s energy plan is about to be approved, a counter reform aimed at state-owned cfes rather than private initiatives. The government acknowledged this structural weakness, but attributed it to over reliance on the US and called for energy sovereignty. This is the main conclusion of the report written by President Bartlett and the main leaders of the power industry. Reconstruction authorities try to explain to Mexicans what happened, which is also a timetable for a government that does not admit responsibility.

The National Center for energy control (cenace) has launched the so-called “operational control”, a coordination mechanism for all participants in the country’s power sector. “As a measure, we have identified inventories of alternative natural gas fuels and developed a plan to convert these power plants into natural gas power plants Carlos Mel é n Dez Roman, the agency’s director general, said: “for alternative fuels, both the State Grid and the power plants have implemented 24 / 7 duty and activated expert workstations to monitor operating conditions.”.

According to the CFE, power plants in Mexico were still guaranteed with natural gas, the country’s main source of electricity, accounting for more than 60% of total power generation. “There has been no interruption in the national gas supply,” the Commission reported. However, as a precautionary measure, the CFE energy subsidiary purchased two LNG vessels, which arrived at Altamira port in Tamaulipas and Manzanillo port on the Pacific coast. Miguel Reyes Hern á ndez, chief executive of the subsidiary, explained: “as we knew from Friday that this could lead to a power outage, the CFE energy and federal electric commission chief executive decided to start buying LNG ships from Friday.”.

This is a turning point in the crisis. Although there has been no supply disruption, cenace announced a state of emergency for the price index to rise. Reyes Hernandez said: “the unprecedented speculation that the price of natural gas exceeds 10000% has begun.”. Over the weekend, the price of natural gas soared to more than $100 per unit (million BTU, the UK’s thermal unit, equivalent to less than 40 liters of liquefied petroleum gas, according to the CFE). Several pipes have frozen and people are increasingly worried. The head of the Department held several meetings.

The first blackout began on Sunday, with the authorities estimating a blackout rate of 16%. A total of 20 power stations have been affected. A number of urgent actions have been taken, such as the activation of transit support routes between fuel supplies and power plants. Inventories fluctuated between 90% and 96%. Supply disruptions have been recorded at night. “That’s why there was a blackout at 6 a.m. on Monday. Remember, we are fundamentally dependent on what natural gas is, “CFE’s energy director continued.

The official highlighted Pemex’s support, which was the key to the weekend: “without Pemex’s support, we would not be able to guarantee the storage of other fuels on Sunday so that many factories could work on Monday.”

Deterioration in temperature and climate conditions in northern Mexico and Texas has affected the operation of the other five pipelines. 15 power plants have been affected, resulting in a large-scale blackout of natural gas supply interruption of nearly 50%. The semi state-owned company has bought two more LPG vessels to deal with the emergency. “We have had a significant impact on gas supply […]. Reyes Hernandez said: “the most affected area is the North Pacific, where the pipeline is almost frozen, there is no gas through, we can’t get gas there.”.

“At 6:19 a.m. on Monday, the first fault occurred. Because of these cold fronts, we had a technical fault on a transmission line. This is the first power outage. It only lasted three minutes, “said Carlos Melendez of cenas. “Then, at 7.48, we now have a second technical glitch, but at the same time now.” The authorities explained that the recovery process began at 7.51. “By 18:30, we had recovered 75% of the affected load and 75% of all users who lost power, thanks to the operation of more hydropower stations, photovoltaic power stations, including fuel oil, diesel and natural gas power stations, which we had at that time.”

The head of CFE energy declined to criticise the lack of natural gas storage. “Some people say why we don’t buy hedge funds or have our own savings. Well, if that’s not the case, the problem is that natural gas doesn’t get through because the pipeline is frozen, which leads to an unprecedented impact on power plants, which obviously leads to peak demand, let’s say, there’s no balance between peak demand and power supply. ”

The situation did not improve: 13 pipelines and 15 power stations were affected. Due to bad weather, the supply of natural gas has been interrupted by more than 60%. CFE also started 11 other power plants to make up for the losses. From Tuesday to Wednesday, at about 2 a.m., the federal electricity Commission has restored almost 100% of the electricity supply to homes and businesses in the northern part of the country. “The recovery rate was 99.79%, and the supply of natural gas increased by 7:00.”

Greg Abbott, the governor of Texas and a Republican, ordered restrictions on gas exports outside the state. Mexico once again recorded 45% of the power supply interruption, which had an impact on power distribution. Low temperature persisted. There were still 13 pipeline freezing problems, while CFE still had 10 affected power plants. Nevertheless, as the CEO of cenace stressed, as of 6pm, the company has “100% restored basic services for all users” from the north and northeast of the country. We only need to provide electricity for some of them, but everyone is already full of vitality in their industry. The Committee assured that the emergency situation had not become worse as a result of the purchase of liquefied gas carriers and stored natural gas from mansanilo and Altamira ports.

The report of the head of the power industry and the information provided by CFE attributed the weakness of the system to the first six years. “This incident shows us the fragility of the country’s dependence on Texas gas. For the benefit of Mexico, we have to restore energy sovereignty, “the agency called, which will benefit the most from Lopez Obrador’s power plan. “The current energy policy aims to rescue, strengthen and cooperate with Pemex and CFE,” the company stressed. “Workers and technicians from the federal electricity Commission have been dealing with this issue since the emergency,” the president stressed, He wanted to make it clear: “the federal electricity Commission and Pemex will continue to be supported by public funds, and their budgets will also be supported.”

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