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Mexico rules out fracking in Tampico-Misantla shale basin

Mexico says hydraulic fracturing will not be allowed in the Tampico-Misantla basin, even as it studies whether unconventional gas could cut reliance on U.S. pipeline supply.

Reported · Written up by our desk · Energy

Mexico has ruled out hydraulic fracturing in the Tampico-Misantla shale basin under Veracruz and Tamaulipas, according to OilPrice. President Claudia Sheinbaum ordered a review of whether unconventional gas could help reduce Mexico’s dependence on U.S. natural gas imports.

Mexico currently buys more than 6.5 billion cubic feet per day of pipeline gas from the United States, covering about 75% of domestic demand, OilPrice reported. Sheinbaum said the measures being considered would lower that reliance to roughly 50%, but that further reduction would require unconventional gas.

The government cited concerns including the basin’s dense population, indigenous communities, and freshwater reserves. The panel recommended prioritizing conventional gas production first, and said future fracking should be limited to basins with salt water rather than freshwater, keeping northern shale formations in play.

Sheinbaum had campaigned as a critic of fracking and its environmental costs. OilPrice also noted that natural gas is a major fuel for Mexico’s power sector and industry, while domestic production has struggled to keep pace, with multiple combined-cycle power plants slated to come online.

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