Pemex Natural Gas Output Falls Short of Government Target in Early 2025

Mexico’s state oil company, Pemex, has seen its natural gas production fall for the second year in a row, according to the company’s official reports.

From January to May 2025, Pemex produced 3.5 billion cubic feet of gas per day, which is 6.3% less than the same period last year. This figure is also 15% below the government’s target for 2025.

Pemex says the main reasons for this drop are old gas fields running out and technical problems finishing new wells. The company drilled just 30 new wells by May, the lowest number in 30 years.

At the same time, Pemex faces heavy debts, reporting losses of 43 billion pesos (about $2.1 billion) in the first quarter of 2025 and holding over $100 billion in total debt. These financial problems have forced Pemex to spend less on new projects and maintenance.

Because Pemex is producing less gas, Mexico is buying more from the United States. Official data shows U.S. pipeline exports to Mexico reached a record 7.85 billion cubic feet per day in May 2025.

Imports now cover a bigger share of Mexico’s gas needs, with the electricity sector using about 60% of all natural gas in the country. Mexico’s government has promised to boost gas production by collaborating with private companies.

However, private firms currently contribute only about 5% of the country’s total output. Pemex’s management says it will not take on new debt this year and will focus on fixing old wells, but experts warn this may not be enough to reverse the decline soon.

This matters because Mexico’s growing dependence on imported gas makes the country more vulnerable to supply problems and price changes from abroad. All figures and facts in this story come from Pemex’s official statements and government data.