Q: How important is natural gas for the energy transition and what role does Neomexicana want to play in the development of natural gas in the country?

A: Natural gas is an easily accessible energy source and our proximity to the United States enhances its availability. This advantageous position allows for development in various sectors, including industrial, residential and transportation. Over time, collaboration between public and private entities has led to the establishment of major natural gas networks, aligning with our transition to cleaner energy. However, it is important to note that pipelines do not reach all regions of the country.

Start of operations

We started operations more than 10 years ago to satisfy a very specific need. We provide compressed natural gas (CNG) on wheels. We continue to build infrastructure, given that the country is not fully connected in terms of energy. Basically we want to deliver gas to industrial customers in areas where there are no pipelines.

Neomexicana was born out of a need for infrastructure. We are a just-in-time solution that prides itself on providing accurate services with no interruptions in supply. Our logistic operations are executed with expertise in Swiss watches. Our commitment is to deliver gas promptly and reliably, ensuring an uninterrupted supply similar to turning on a tap. We understand the criticality of industrial processes.

Q: What does the company expect for the future of natural gas vehicles (NGV) in Mexico?

A: CNG is growing rapidly in the automotive market. We are talking about tractor-trailers and logistics companies that are switching to natural gas. This enables us to help our end customers meet their ESG commitments.

This market has developed significantly in the last five years. Several new brands of tractor-trailers with CNG options are already in their portfolios. Likewise, fleets of urban minibuses with exclusive CNG engines are being deployed to cover routes in the country’s main cities, such as Mexico City, Guadalajara and Monterrey.

A little more than 10 years ago, there were very few NGV stations in the country. The growth of the CNG market has gone hand in hand with an increase in fixed and virtual refueling stations in the country’s main cities, creating corridors for transporters from the central part of the country to the northern border.

Neomexicana’s foray into NGVs was supported by strategic alliances with early stakeholders in the NGV market. We carried out our first comprehensive NGV project in 2017.

Q: What projects are you most excited to see developed this year?

A: We are working on the placement of mobile units to supply high-demand logistics companies on site. It is key to provide this service to companies in charge of moving goods domestically and to the United States. There are many large companies that want to convert their trucks from diesel to CNG because they are already seeing the economic benefits and the availability of this fuel.

Natural gas will change the rules of the game because, in addition to saving money, it provides customers with greater control and security. Fuel theft problems can be avoided and units can be equipped with state-of-the-art technology. It seems to me that the country still has a bias towards these energies. We have to break paradigms and establish the advantages of natural gas.

In the long term, even cleaner energies will continue to be developed. Although there are many players, the energy reform has been reversed and the regulatory environment is unclear. The industry must be organized and respect processes, obtain the necessary permits and constantly monitor regulations. Internally we need to organize ourselves and think about the safety of the industry. Any accident could affect us all.

Neomexicana primarily provides non-pipeline natural gas solutions and is a technology developer for the transportation of compressed natural gas.

Source: Mexicobusiness

Jonathan Arce

NeoMexicana Chief Executive Officer