The Gazprom Headquarters hosted today a working meeting of Alexey Miller, Chairman of the Gazprom Management Committee, Georgina Kessel Martinez, Energy Minister of Mexico, and Alfredo Perez Bravo, Ambassador of Mexico to Russia.

The parties discussed the cooperation prospects relevant to building up oil and gas resources and upgrading Mexican gas infrastructure.

The meeting participants addressed the issues of liquefied natural gas (LNG) supplies to Mexico with the subsequent shipment to the US market within the Sakhalin II project.

During the negotiations the parties confirmed their interest in reinforcing the mutually beneficial long-term partnership between Gazprom and Mexican Petroleos Mexicanos in the energy sector.

Background:

The proven natural gas reserves of Mexico account for some 500 billion cubic meters and are primarily located in its northern part. Besides, Mexico holds considerable potential gas resources including in the Gulf of Mexico offshore area.

In 2008 indigenous gas production and consumption in Mexico totaled 55 and 67 billion cubic meters respectively, with around 10 billion cubic meters imported from the USA. Natural gas makes up 27 per cent in the country’s energy balance.

At present, the Mexican Energy Ministry pursues the policy of switching from oil to natural gas.

The state-owned Petroleos Mexicanos (Pemex) holds the exclusive right to explore and extract oil and gas in Mexico. The company’s gas pipelines are around 10 thousand kilometers long.

Upon adoption of the Natural Gas Act in 1995, the gas transportation, storage and distribution market opened up for private investment.

In April 2009 Gazprom Marketing & Trading set up a subsidiary – Gazprom Marketing & Trading Mexico, S. de R.L. de C.V. (GM&T Mexico). GM&T Mexico deals with LNG supplies to Mexico with the subsequent shipping to the US market within the Sakhalin II project.