Mexico mining, steel firms report nat gas halt fallout

Mexico’s mining and steel companies are facing disruption and spiraling costs after Texas halted natural gas exports following historic winter storms.

Freezing conditions in the US state impacted supplies, leading to power outages across Mexico’s northern states and a surge in natural gas spot prices.

Texas state governor Greg Abbot has ordered producers to halt natural gas exports until February 21.

Mexico is heavily reliant on US exports of natural gas, from which more than 60% of its power is generated.

The Mexican government has urged people to reduce electricity use, while federal power company CFE seeks to increase power generation from other sources.

These include hydroelectricity, fuel oil and liquefied natural gas and coal, although some coal mining operations have been halted due to electricity shortages.