Mexico's Other Fossil Fuels: Natural Gas and Coal Locations

Beyond its massive oil reserves, Mexico holds significant deposits of natural gas and coal in specific geological basins:

Natural Gas: Burgos Basin (Northeast)

• Primary region: Burgos Basin, straddling Coahuila, Nuevo León, and Tamaulipas.
• Part of the larger Gulf of Mexico sedimentary province.
• Produces dry and associated gas; key for domestic electricity and industrial feedstock.
• Pemex and private operators (post-2013 reform) active here.

Coal: Two Main Basins

Coahuila-Sabinas Basin (North)

• States: Coahuila, Nuevo León.
• Mexico's largest coal reserves (bituminous, coking quality).
• Major mining: Sabinas, Múzquiz, Palaú regions.
• Feeds CFE power plants (e.g., José López Portillo, Carbón II) and steel industry (Altos Hornos de México).

Oaxaca-Tlaxiaco Basin (South)

• State: Oaxaca.
• Smaller, sub-bituminous deposits.
• Limited commercial exploitation; complex geology and social/environmental concerns.

Strategic Context

Natural gas is growing in importance for Mexico's energy transition (replacing fuel oil). Coal remains controversial—domestic production supports energy security but conflicts with emissions goals. Both resources are concentrated in the north, far from southern demand centers, requiring pipeline/rail infrastructure.