Key facts
- Mexico will not permit hydraulic fracturing in the Tampico-Misantla basin.
- The decision was based on the basin's dense population, indigenous communities, and freshwater reserves.
- The government aims to reduce its dependence on U.S. natural gas imports, which currently cover about 75% of demand.
- Future fracking is recommended to be limited to basins with saltwater, not freshwater.
- At least 75% of water used in fracking projects must be recycled or reused.
- Mexico holds an estimated 141.5 trillion cubic feet of unconventional gas resources.
Mexico has decided against allowing hydraulic fracturing in the Tampico-Misantla basin, a significant decision for the country's energy strategy and its reliance on U.S. natural gas imports. President Claudia Sheinbaum stated that fracking will not be permitted in this key shale basin, located beneath Veracruz and Tamaulipas, due to concerns over its dense population, indigenous communities, and vital freshwater reserves.
The government commissioned a panel of 56 scientists and experts to evaluate the potential of unconventional gas development. While the panel recommended banning fracking in the Tampico-Misantla basin, it suggested strict water and environmental safeguards for other areas, particularly northern formations like the Sabinas-Burro-Picachos and Burgos basins, which hold the majority of Mexico's estimated 141.5 Tcf of unconventional gas resources.
Mexico currently imports approximately 75% of its natural gas from the United States, amounting to over 6.5 billion cubic feet per day. Even with proposed measures to boost domestic conventional gas production, the country's reliance on U.S. supply is projected to decrease only to about 50%. To further reduce this dependence, unconventional gas would be necessary, but the panel's recommendations prioritize using underground saltwater for fracking, with a requirement to recycle or reuse at least 75% of the water used.
President Sheinbaum, who campaigned on a platform critical of fracking's environmental impact, faces the challenge of balancing energy security needs with environmental protection. Natural gas is crucial for Mexico's power sector and industry, and domestic production has lagged behind demand. Pemex aims to increase domestic output to just over 4 billion cubic feet per day by 2030, a target still far from eliminating imports.
The debate over fracking will move to Mexico's congress in September. While support is not guaranteed within the ruling Morena party, opposition figures like lower-house president Kenia Lopez have voiced support for fracking under strict safeguards, emphasizing its role in energy sovereignty.