Demand for natural gas in Mexico is expanding. This increase in the use of gas is due to a rapidly developing household market and to substitution with gas of heavy fuel oils for industrial uses. Increasingly stringent environmental standards are incentivating this demand. Pemex Exploration and Production, as the government agency responsible for finding, developing and producing Mexico's oil and gas resources has implemented strategic projects to fulfill the growing need for gas supplies. This presentation gives an overview of the actions that Pemex E & P has and is taking in the Burgos and Veracruz basins to help satisfy the nation's need for gas.

Both Burgos and Veracruz are tertiary siliciclastic basins located in the western margin of the Gulf of Mexico proper, and both are producers of dry sweet gas. Burgos is located in northeastern Mexico, it covers 49,800 km2. It is limited to the west and south by east diping mesozoic marls and limestones, to the east by the continental slope and to the north by the Rio Bravo del Norte (Rio Grande River), although the basin itself continues into South Texas, where it is known as the Rio Grande Embayment (Texas Railroad Commission, District IV). The Veracruz basin with an areal extent of 18,000 Km2 is located on east central Mexico and is limited to the west by a laramide thrusted foldbelt (producer of sour wet gas, condensates and some oils), to the north by recent volcanic rocks, to the east by the continental slope and to the south it becomes the Isthmus Saline basin. Dry gas production reached a maximum of 620 MMcfd in 1970 for Burgos and 45 MMcfd in 1971 for Veracruz.

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