AMLO's Reform, USMCA Energy Concerns: The Week in EnergyBy Alejandro Enríquez | Thu, 07/15/2021 - 17:47
This week, President Andrés Manuel López Obrador announced a new reform for the energy sector, which would create a state company for the distribution of natural gas. Meanwhile, CFE accused Acciona Energy of providing a 'faulty interconnection' that allegedly caused last December's massive electricity blackout.
Industry leaders also addressed the country’s changing energy environment. Arturo Carranza, Energy Adviser and Consultant, analyzed the priorities of the presidential administration regarding the energy sector. Monte Mickle and Leurent Meulemans, President and Sales Director of Enerlogix Solutions, respectively, clarified some of Mexico's vast energy options.
In international news, an International Energy Agency’s (IEA) report on the advancement of the Paris Agreement considered that Mexico's commitments will "fall far short of what is required." Meanwhile, the US and Canada have raised concerns about some aspects of Mexico's energy sector.
Halfway Through the Presidential Term, What’s Next for Energy?
"After 32 months that have been accompanied by a combative narrative that aims to distinguish the government in place from past administrations, the assessment in the energy sector is not striking,” writes Arturo Carranza, Energy Adviser and Consultant. “The first three years of the current government were underlined by the presidential attempt to modify the energy sector’s legal framework. Although other decisions have also been made, such as the cancelation of oil and electricity sector auctions, the greatest change relates to the intention to derail, by legal means, the energy model created in 2013."
Making Sense of Mexico’s Vast Energy Options
“Uncertainty exists around the current administration’s policies, which are averse to the Energy Reform. Ultimately, we believe customers know what is best for their energy needs as opposed to a monopoly,” said Monte Mickle, President of Enerlogix Solutions. Mickle and Leurent Meulemans, Sales Director of Enerlogix Solutions, clarified some of Mexico's vast energy options in an interview with MBN. Read the full interview here.
Analysis: Mission to Gasify Mexico Calls for Infrastructure
Significant expansions to the internal infrastructure network are needed if more regions in the country are to benefit from natural gas. With much to do around infrastructure, one question arises: How could public and private sectors work together to grow the reach of Mexico's increasingly important natural gas infrastructure? Industry experts outline the path forward in a discussion with MBN.
AMLO Announces New State Enterprise
In an effort to provide better gas prices to the Mexican population, President López Obrador announced the creation of a new state-owned enterprise called “Gas Bienestar,” to sell liquified petroleum (LP) containers between 20-30 kg at a “justifiable” rate.
AMLO Seeks Constitutional Reform
President López Obrador insisted on seeking constitutional changes to enact his energy reform proposal despite losing qualified majority in congress after June’s midterm elections. On a trip to his native state of Tabasco, he announced he would send a constitutional reform initiative in the field of electricity, citing the interest of civil protection and putting the people before corporate interests.
CFE Accuses Acciona Energy for Faulty Interconnection
Spanish firm Acciona Energy has been found to be partly responsible for last year´s December massive electricity blackout in Mexico, according to a report emitted by the Federal Electricity Commission (CFE). The report specifies that ultimately the failure was a result of a fire that started from an “irregular interconnection” at San Carlos Solar Park, where Acciona Energy is located.
Lukoil Strengthens Mexican Project Base
Russian multinational oil and gas company Lukoil strengthened its commitment to the Mexican oil and gas market after buying the bankruptcy-threatened Fieldwood’s 50 percent stake in Mexico’s shallow water project Area 4. The operator is already present in Area 10, 12, 14, 28 and Amatitlan.
Mexico’s Energy Sector Drawing Concerns from US and Canada
One year after the ratification of the USMCA, Mexico’s Secretary of Economy Tatiana Clouthier, US Trade Representative (USTR) Katherine Tai and Canadian Minister of Small Business, Export Promotion, and International Trade Mary Ng met in Mexico City to discuss trade agreement achievements and long-term growth opportunities. During their meetings, both Tai and Ng expressed concerns regarding Mexico’s energy sector policies.
IEA: A Pathway Towards Net-Zero
Mexico's government commitments made at the 2015 Paris Agreement “fall far short of what is required” to meet net-zero emissions by 2050, according to a report published by the IEA. Even if governments today were able to successfully meet their pledges it would still leave about 22 billion tons of CO2 emissions worldwide, equivalent to a 2.1°C increase by 2100.