CFE Reports Record Profits

After a reform that strengthened state company CFE, the company reported a 270% increase in profits in 1Q23. Nevertheless, these energy policy changes have created tensions with the US and Canada regarding unfair competition in the Mexican electricity market.

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US, Canada Share Challenges in Mexican Energy and Mining Sectors

Global Affairs Canada has released a statement indicating that the US and Canada are encountering shared challenges concerning Mexico's energy and mining sectors. The Canadian Minister of International Trade and the US Trade Representative discussed the importance of maintaining a favorable trade environment, supported by the implementation of USMCA, as well as a robust multilateral trading system supported by the World Trade Organization (WTO).

CFE Profits Increased 270% in 1Q23

CFE reported net profits of MX$32.1 billion (US$1.7 billion) in 1Q23, as a result of higher revenues, lower operating costs and profit from currency fluctuation. CFE pointed out that since the beginning of 2023, the price of gas has stabilized. These numbers showcase a strong improvement against last year, when CFE reported a net loss of MX$15.6 billion (US$874.4 million) in 2022.

NL Wind Power Potential to Support Green Hydrogen Production

The state of Nuevo Leon has the potential to produce green hydrogen at low costs through the use of wind power, according to a report by the Mexican-German Energy Alliance and the Ministry of Economy of Nuevo Leon. The report says that large-scale green hydrogen projects could be paired with wind energy projects in the eastern part of the state, while small-scale projects could be located in the municipality of Higueras.

Wintershall Dea Makes “Major Oil Discovery” in Mexico

Wintershall Dea announced a significant oil discovery at the Kan exploration prospect in the Sureste Basin, offshore Mexico. Preliminary estimates suggest the discovery may contain between 200 and 300MMboe in place. Wintershall stated that it confirms the attractiveness of Block 30, complementing the company's outstanding Mexican license portfolio. 

CFE Reconnects AHMSA

On Feb. 23, 2023, Altos Hornos de Mexico (AHMSA), the largest steel plant in Coahuila, Mexico, was disconnected from the grid by CFE due to overdue payments. A court ruling ordered CFE to reestablish the electricity supply to continue with the trial so the company could still cover the employees’ wages.