CFE Fortifies Commitment to Energy SecurityBy María José Goytia | Thu, 08/11/2022 - 10:27
Canadian infrastructure giant TC Energy singed a major deal with CFE to develop an offshore gas pipeline in Mexico’s southeastern region. Meanwhile, Mexico City’s government announced the metro’s electric system will complete its modernization this September. Furthermore, daylight saving time is once again under review, as INAI requests the presidency to unveil the survey that supports its elimination. In other news, the US Senate passed major climate bill.
Ready for more? Here is the Week in Energy!
TC Energy reached an agreement with CFE to develop an offshore natural gas pipeline worth US$4.5 billion, which will supply the fossil fuel to Mexico’s central and southeastern regions. The agreement comes at a time when Canada and the US continue their commercial quarrel with Mexico within the framework of the USMCA and amid surging demand for natural gas worldwide.
Modernization works for the electrical supply of the Mexico City Metro’s Lines 1, 2, and 3, overseen by state electric utility CFE, will be completed by September 2022, announced the Mexico City government. The “Metro-Energy” project aims to update the electric infrastructure of the collective transportation system to assure its safe operation for the next three decades.
Héctor López Villarreal, Nuclear Power Plants Manager and Nuclear Corporate Coordinator, CFE, shared during his presentation to members of the College of Mechanical and Electrical Engineers of Jalisco (CIMEJ) that the Laguna Verde Nuclear Power Plant produces 18 percent of Mexico's clean energy. López emphasized that Mexico's only nuclear plant contributes reliable and safe energy to the energy matrix.
During the centennial of the Institute of Electrical and Electronics Engineers (IEEE) in Mexico, Manuel Bartlett, Director General, CFE, reiterated the state utility’s commitment to strengthen Mexico’s energy security through collaboration with the North American private sector and the company’s consolidation as a leading player in the national energy sector.
The National Institute for Transparency, Access to Information and Protection of Personal Data (INAI) urged President López Obrador to publish the survey on which he based his bill to eliminate Daylight Saving Time (DST). The transparency request revives the debate surrounding the elimination of DTS.
Mexico and Japan formed an alliance to promote green hydrogen initiatives and to share experiences regarding the development of this industry. The Mexican Hydrogen Association (AMH2) signed a Memorandum of Understanding (MOU) with the Japan External Trade Organization in Mexico (JETRO) where it stablished a close collaboration relationship as strategic international allies in the development of green hydrogen.
Mexico’s energy industry faces a crossroad. As the world’s leading and emerging economies join forces toward achieving ambitions climate goals, Mexico’s domestic energy policy has strengthened its bet on fossil fuels as the main source for power production. Although Mexico has committed to the Paris Agreements and has recently emphasized its intentions to collaborate with its North American partners, in practice, the government has remained reluctant to change its bet on state-owned companies to achieve energy security. These topics and more about the current state of the Mexican energy sector and the trends that lie ahead will be discussed by decision-makers and key players at Mexico Energy Forum 2022 ECHO. The forum will be preceded by Mexico Natural Gas Forum 2022, a unique opportunity to discuss relevant issues surrounding Mexico’s main fuel for power production.
The US Senate passed major legislation that enables the most significant US federal investment in history to counter climate change and lower the cost of prescription drugs through a new tax scheme where the richest pay a higher share of taxes. The bill was promoted and approved by Democrat senators, despite Republicans opposition.