Mexican energy reform will allow country to reduce dependence on fertilizer and imports of staple foods, Baker Institute says

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David Ruth
713-348-6327
david@rice.edu

Jeff Falk
713-348-6775
jfalk@rice.edu

Mexican energy reform will allow country to reduce dependence on fertilizer and imports of staple foods, Baker Institute says
Duhalt: Increasing natural gas supply and transport infrastructure will contribute to gains in ammonia and nitrogen fertilizer  

HOUSTON – (Jan. 6, 2015) – After decades of underinvestment, Mexico’s natural gas pipeline network faces severe limitations in capacity and geographical coverage; consequently, the country is facing limitations in meeting domestic demand and dependency on imports of both nitrogen fertilizers and staple foods, according to a new policy paper from Rice University’s Baker Institute for Public Policy.

Credit: thinkstockphotos.com/Rice University

Mexican President Enrique Peña Nieto’s energy reform and regulatory changes that give incentives to policies to increase production of ammonia and urea could help change that, according to Adrian Duhalt, a nonresident scholar in the Mexico Center at the Baker Institute. He shares his perspective in a policy paper titled “Natural Gas Supply and Production of Ammonia and Urea in Mexico: Structural Setbacks and Policy Implications.”

Duhalt, who is also an associate professor at the Universidad de las Américas Puebla, is available to comment on these and other developments related to Mexican energy reform.

“The production activities of several important industrial sectors in Mexico depend on an inadequate supply of natural gas,” Duhalt said. “To correct this, the government has launched an aggressive program to upgrade natural gas transport capabilities. However, Mexico is likely to see stronger consumer demand in the years to come. The country possesses important natural gas reserves that it does not have the capital to exploit. The recent energy reform in Mexico aims to correct this shortcoming by attracting foreign investment in the natural gas sector.”

Duhalt said the government’s recent natural gas-related infrastructure program and energy reform are designed in part to help decrease the country’s reliance on imports of fertilizers (urea) and basic food staples, which stand at approximately 70 percent and 43 percent of domestic consumption, respectively.

“Increasing natural gas production and infrastructure will contribute to gains in ammonia and nitrogen fertilizer production, which would in turn have a positive impact on Mexico’s agro-industry,” Duhalt said.

For more information or to interview Duhalt, contact Jeff Falk, associate director of national media relations at Rice, at jfalk@rice.edu or 713-348-6775.

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Follow the Baker Institute Mexico Center via Twitter @BakerMexicoCtr.

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Related materials:

Duhalt biography: http://bakerinstitute.org/experts/adrian-duhalt.

Baker Institute Mexico Center: http://bakerinstitute.org/mexico-center.

Founded in 1993, Rice University’s Baker Institute ranks among the top 15 university-affiliated think tanks in the world. As a premier nonpartisan think tank, the institute conducts research on domestic and foreign policy issues with the goal of bridging the gap between the theory and practice of public policy. The institute’s strong track record of achievement reflects the work of its endowed fellows, Rice University faculty scholars and staff, coupled with its outreach to the Rice student body through fellow-taught classes — including a public policy course — and student leadership and internship programs. Learn more about the institute at www.bakerinstitute.org or on the institute’s blog, http://blogs.chron.com/bakerblog.