Private participation in the development of natural gas distribution networks is often introduced through the award of exclusive concessions for defined geographic zones. Designing such franchises in a megacity poses a challenge in striking a balance between economies of scale (few distributors)...

In 1995 the Mexican government initiated structural reform of the natural gas sector-reform that permitted private investment in transportation, storage, distribution, trade and marketing while maintaining a State monopoly in production. It prepared a detailed regulatory framework to implement...