Mexico Eyes Strategic Natural Gas Storage: Costs and Options Explored

Mexico is placing renewed emphasis on building strategic natural gas storage capacity, a move critical for energy security and market stability. The nation's Energy Sector Program for 2025-2030 specifically includes developing infrastructure for this purpose, while CENAGAS, the national natural gas control center, is evaluating projects to establish state-managed strategic and operational inventories.

This initiative is not new. Mexico previously aimed for five days of natural gas storage in 2018. The discussion resurfaced in November 2025, when CENAGAS's new Five-Year Plan proposed increasing reserves from about 2.5 days to at least 10 days. This expansion would be achieved through strategic infrastructure and mixed investment.

The need for strategic reserves is becoming more pronounced as Mexico strengthens its natural gas infrastructure and its role as a liquefied natural gas trading hub. These reserves are essential to mitigate potential supply disruptions and manage demand surges.

Several technologies are being considered for storage, including depleted reservoirs, salt caverns, and confined aquifers. Each option presents unique requirements regarding timelines, location, permits, and interconnections. The Mexican Institute for Competitiveness (IMCO), using data from the Ministry of Energy, estimated the investment cost between $428.3 million and $2.59 billion, depending on the technology. However, this figure serves as a historical reference, not a current budget.

David E. Rosales, managing partner at Elevation Ideas, notes that depleted fields are often more cost-effective for large-scale projects, while salt caverns can be more competitive for smaller developments. The question of financing is also key. Rosales suggests that storage should be funded by all system users, with CENAGAS managing project bids and regulatory authorities approving gradual tariff-based collections.