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Q: What are the key lessons that Diavaz has learned during its 51 years, and how have these lessons shaped your current strategy?
AB: In these 51 years, Diavaz has learned to adapt to market needs, whether in oil, services, or natural gas. Adaptability has been constant throughout these years, since both the regulatory framework and market conditions have changed. We have always been able to adapt.
RO: One of the lessons Diavaz has learned is the importance of strategic planning. We create a vision for the future and work closely on programs and projects that will help achieve that vision. The focus is strong on growth, safety, customer service, technology and training.
Q: What makes Diavaz the go-to option for clients in the north of the country?
RO: Both the industrial and residential markets are growing. We are investing to expand our infrastructure, particularly in Nuevo Leon, to meet the demands of all new industrial parks that are being built in response to nearshoring. We are also working closely with housing developers, to provide gas equipment in homes in a timely manner, even before they are occupied. Our clients’ trust comes from quality and safety in our service, along with the competitive prices we offer.
AB: A fundamental part of our offer is customer service. Our clients know that Diavaz is synonymous with security and reliability, a combination that has allowed us to retain our customers for many years and grow with them. We add about 16,000 residential customers per year.
Q: How can Mexico strengthen its own natural gas infrastructure to decrease dependence on US gas exports?
AB: Finding balance is essential. Mexico has strong potential for the production of natural gas. In recent years, both PEMEX and private companies have taken advantage of gas due to regulations. The use of gas has increased considerably and we are approaching its limits. The energy transition will require using the gas in the subsoil. Production in Mexico, whether from PEMEX or private companies, will need to increase to accommodate nearshoring.
RO: It is necessary to increase gas production levels in the northern and southern areas of the country and bring supply and demand closer together in order to mitigate dependence on US supply. It is also important to implement strategic and operational storage to resolve supply interruptions and gas imbalance.
Q: How can virtual pipelines help industrial parks generate electricity in places where transmission and infrastructure hinders energy access?
AB: Energy generation should be enhanced to face nearshoring. Industrial parks, for example, can generate their own electricity with the support of CFE. Parks need gas, electricity, and water. Once they have those, the number of projects arriving will increase rapidly.
RO: Virtual pipelines, which transport gas through vehicles, allow the provision of gas in regions without pipeline infrastructure. The supply of natural gas through a virtual gas pipeline allows the start of operations of any industry, whether it is electricity generation or thermal processes, despite not having finished the physical gas pipeline or the electricity transmission and distribution infrastructure. In this case, it is a temporary solution. However, there are cases where the virtual gas pipeline has been operating for more than 10 years without interruptions and delivering gas to power generation plants.
Q: What is the biggest challenge involved in developing natural gas infrastructure in the south of Mexico?
AB: Regulatory implementation needs to be faster because the industrial sector needs gas as soon as possible. If obtaining a permit takes too long, it delays the entire process. We work closely with the authorities through the Mexican Natural Gas Association to obtain permits on time.
RO: One of the main challenges for building transportation pipelines, in addition to regulatory permits, is to resolve rights of way, which have been one of the main obstacles in infrastructure development. Additionally, there is a lack of energy demand that justifies investment in the southern part of the country. We work closely with state governments and industrial chambers to attract investment and generate demand.
Q: How does Diavaz contribute to the development of Mexico’s upstream sector?
AB: In 2013, the market was given the opportunity to have fields with PEMEX. There are still many challenges, but also many opportunities to work with PEMEX. Although there has been a lull in the market in recent years, there will be many more opportunities ahead because Mexico has natural gas and oil reserves. We do not know if there will be new rounds but, together with PEMEX, there will be more fields to exploit in the next two years.
Q: What are Diavaz’s plans for this and next year within the oil and gas industry?
AB: Natural gas is a fundamental lever to achieve the energy transition. Our strategy is to continue investing in infrastructure to reach more industries and homes. The price of gas will follow market fluctuations, but we seek to offer clients an accessible and competitive product.
RO: We focus on three areas. First, we invest considerably in all our processes to ensure the best service delivery without skimping on security. Second, we always seek to improve services using the most advanced technologies available on the market. And third, our staff is constantly training and adapting to new technologies and methodologies to offer a better service to our clients. We highly focus on security and technological innovation to meet the changing needs of the market.
Q: How will the National Energy Strategy influence Diavaz’s operations in Mexico?
AB: The National Energy Strategy is a positive development as it provides a clear direction forward. Natural gas remains a fundamental element, particularly in energy generation. Natural gas can play two roles. The first role directly relates to generation and the second is by supporting CFE’s plan to increase production from 0.7MW to 20MW. The increase in energy generation will greatly help nearshoring because when a company seeks to establish operations in Mexico, it considers natural gas, energy, and water feasibility.
Efficient energy distribution and transmission in Mexico require significant investment in infrastructure. By allowing parks to generate their own energy, they can start building and establishing themselves.
One of our companies offers this service, providing both gas and generation equipment according to the client’s needs.
Q: What role can natural gas play in the government’s energy self-sufficiency strategies?
AB: Mexico has access to the least expensive natural gas in the world, but it imports 80% of what it consumes. PEMEX consumes what it produces. The government’s plan could allow for an almost twofold increase in natural gas production, which would be crucial to mitigate dependency. The elements are in place, as the fields considered to reach those numbers are already in development.
Another key aspect for self-sufficiency is storage. Plans for strategic storage were discussed in 2018 but few advances were made. The topic is now on the radar again, but the details need to be clarified.
Q: How will US policy and the renegotiation of the USMCA influence Mexico’s natural gas market?
AB: The USMCA is set for review in 2026, so it is best to wait to see how the discussions evolve. Mexico and the United States have been trade partners for a long time, and the latter country sells a great deal of natural gas to Mexico. Mexico imports between 6.5BCF and 7BCF from the United States, while also exporting many products to that country.
While the Mexican government’s plans for self-sufficiency will play a key role, trade will prevail as long as it remains beneficial for both countries.
Source: https://mexicobusiness.news/oilandgas/news/natural-gas-key-energy-transition-diavaz
