CFE to Guarantee Electricity During Winter Period
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CFE to Guarantee Electricity During Winter Period

Photo by:   Johannes Plenio - Unsplash
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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Wed, 12/28/2022 - 10:29

Among this week’s top stories, CFE has a plan to tackle gas shortages and guarantee energy generation in the entire country. Also, check out the most relevant events that took place in the Mexican energy sector over 2022 in this week’s analysis article. 

Ready for more? Here is your weekly roundup!

CFE to Ensure Electricity Generation Despite Gas Shortage

On Dec. 21, 2022, CENACE declared an Emergency Operational State in the National Interconnected System due to the arrival of cold front 19. According to CENACE, up to 9,000MW of electricity generation could be compromised by the storm. A similar situation happened in February 2021, when a winter storm in the south of the US paralyzed the oil and gas industry. The blackout affected more than 4.7 million Mexican citizens, mainly in the north side of the country. However, CFE assured it has a plan to guarantee the electricity service in the country.

2022: An Uncertain Year in Energy

Over the past decade, the energy industry in Mexico has faced diverse challenges while evolving into a greener, more sustainable sector. Among the most relevant events the sector saw in 2022 were this administration’s constitutional attempt to undo the 2014 Energy Reform. 

López Obrador’s administration has inhibited private participation in the energy sector to favor state owned companies CFE and PEMEX. Consequently, the modifications to Mexican energy policy led the US and Canada to initiate a consultation process to resolve differences under USMCA’s dispute resolution scheme. 

Mexico to Acquire Debt for Sonora Plan

President Andrés Manuel López Obrador said that Mexico is willing to acquire debt to develop solar plants for the Sonora Plan. Debt would come through credits, granted by the US with low interest rates, contracted by the Ministry of Finance rather than CFE itself. President López Obrador stated that the plants will be fully operated by CFE and their construction will only require Mexican and US companies, although Canada could join this agreement. Furthermore, the president said he is considering promoting the construction of automotive plants for electric vehicles in Sonora, since this state produces copper.

Sempra to Export LNG to Non-USMCA Countries

The US Department of Energy (DOE) authorized Sempra Infrastructure’s Costa Azul and Vista Pacífico to re-export US sourced LNG from Mexico to non-USMCA countries. DOE granted a license to Vista Pacífico to export up to 200Bcf/y of LNG. Meanwhile, it authorized Costa Azul to export up to 636Bcf/y, an increase to the volume of exports previously granted. The permits allow them to re-export LNG until 2050. 

Sempra expects to start exports in 2027 for Vista Pacífico, including one liquefaction train with a gas pretreatment unit, a 6.36MMcf LNG storage tank, a marine jetty, ground flare equipment and connective piping and infrastructure. Costa Azul is currently under development at Sempra’s terminal in Baja California, and it will use two 6.2-million t/y CO2 liquefaction trains. 

Timing, Timing, Timing

Karla Cedano, Head of Technology Management and Liaison, Renewable Energies Institute, UNAM, underscores the importance of prospective planning in the entrepreneurship practice, through a personal story. Click on the link to read it.

Photo by:   Johannes Plenio - Unsplash

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