Since early November, Mexican media has warned about an imminent challenge in domestic LPG supply, driven by port infrastructure failures and logistical disruptions at Coatzacoalcos, one of the country’s key import hubs.
Although Mexico produces LPG locally, the market relies heavily on imports from the United States through ports such as Tuxpan and Manzanillo, while also exporting small volumes to nearby countries like Cuba, based on maritime traffic data.
Mexico consumes approximately 40 million liters of LPG per day, with more than 60% arriving via waterborne shipments, official figures show. This dependency makes robust logistics and port infrastructure critical to ensure uninterrupted supply of a fuel primarily used for household energy needs.
Recent reports and vessel tracking data indicate that Tuxpan has emerged as the primary hub for LPG imports, handling nearly all domestic demand. Operations are concentrated at the Termigas LPG Storage Terminal, adjacent to the Barra Norte storage facility, a key processing point. This shift in LPG flows from Coatzacoalcos to Tuxpan began in May 2025, reaching its peak in October 2025.
The situation raises concerns about supply stability, compounded by a 46% decline in domestic LPG production. In practical terms, Mexico is producing less LPG, importing most of it from the U.S., yet without securing adequate import and distribution infrastructure. This has contributed to a price increase of over 5% in central states, a significant impact given LPG’s widespread use in households.
How should industry and policymakers respond to strengthen infrastructure and ensure energy security in Mexico?
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