Canales Negotiates Coordinated LNG Policy with US, Canada

Mexico is negotiating with the US and Canada a new coordinated policy to treat liquefied natural gas (LNG) as a commodity to reduce its price and increase availability of the fuel, Mexico's energy ministry said in a statement.

Mexico's energy minister Fernando Canales participated in the G-8+5 energy ministers' meeting in Moscow from March 15-16, when the ministers discussed energy issues with an eye to signing concrete agreements at the Saint Petersburg's G-8+5 summit meeting from July 15-17, the statement said.

During the Moscow meeting, G-8+5 energy ministers discussed the need to build more hydroelectric projects for clean electric power generation and lower environmental impact as well as measures to increase energy security and lower prices, the statement said.

Canales discussed his country's deepwater hydrocarbons production, new natural gas wells in Burgos basin and LNG imports, The latter are seen as one solution to Mexico's energy crisis because the country does not produce enough gas of its own to meet domestic demand and piped gas imports from the US based on the Henry Hub index have pushed up energy prices dramatically.

The Mexican minister held bilateral meetings with representatives from the US, Canada, Russia and South Africa, the statement said.

Russia's President Vladimir Putin officially opened the event and Russia's industry and energy minister Victor Khristenko led the working meetings.

The G-8 comprises Germany, Canada, the US, France, Italy, Japan, the UK and Russia, while the five developing countries are Mexico, Brazil, China, India and South Africa.

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