Mexican gas producers face royalties up to three times US levels, executive says

A Mexican oil consortium director says gas producers in Mexico pay royalties 2.5 to 3 times higher than competitors in the United States.

He says this makes projects less profitable and can discourage investment in local production.

Mexico imports natural gas from the United States, and the director says this can mean fewer local jobs and less support for industries that use gas and its by-products.

Lower royalties, he argues, could help make Mexican production more competitive.