CFE seeks to collaborate with private companies on the implementation of large LNG projects. Meanwhile, Mexico’s lack of compromise regarding the energy transition could put it behind in meeting the demands of the global market.
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CFE seeks to collaborate with private companies that can provide the necessary knowledge and resources for the implementation of large LNG projects. However, CRE has proposed updates to the country's natural gas transport and storage tariff regulations, which could pose obstacles for LNG developers. Despite these challenges, CFE and New Fortress Energy have recently signed an agreement to collaborate on the development of LNG plants.
Mexico’s demand for natural gas is expected to rise in the coming years, driven by the growing energy needs of the country and the nearshoring trend. Balancing re-exportation with domestic consumption and addressing challenges faced by PEMEX in promoting natural gas usage and reducing wasteful practices are key to achieving a sustainable and secure energy future for Mexico.
According to the Mexican Council of Sustainable Finance, conservation and preservation of the environment hold not only ecological significance but also economic and social value. If Mexico does not take steps toward the energy transition, soon enough, its trading partners will start demanding components and services that the country is unable to provide, finding itself unable to meet the demands of the global market.
As a result of Mexico’s deal with New Fortress Energy, Mexico has become a prominent exporter of liquefied natural gas in the region, surpassing Canada. New Fortress Energy Mexico has already established agreements with other international private energy companies, including Sempra Infrastructure and TC Energy to carry out the energy projects proposed by Mexico’s president.
The California Institute of Technology (Caltech) has achieved a milestone in space technology with its successful demonstration of wireless power transfer from space to Earth. This experiment was possible through the Microwave Array for Power-transfer Low-orbit Experiment (MAPLE), led by SSPP to harness solar power in space and transmit it to Earth. Caltech's breakthrough serves as a reminder of the importance of growing the renewable energy sector to achieve international decarbonization goals.
CRE's decision to categorize natural gas generation in combined-cycle power plants as fuel-free energy, making it eligible for Clean Energy Certificates (CELs) has sparked controversy within the industry and raised concerns about the integrity of Mexico's clean energy program. According to ASOLMEX and AMDEE, considering natural gas as clean energy and awarding it CELs could lead to a misleading perception of Mexico's progress in transitioning to renewable sources.
Vladimiro de la Mora, President, GE Mexico, underscores the importance of MSMEs as a fundamental piece of the Mexican economy. MSMEs contributed 42% to the country's GDP in 2021 and generated 12 million formal jobs, accounting for 72% of total employment. According to de la Mora, to encourage the development of this kind of businesses, strategic alliances can be formed with large companies, providing technical advice, training, and access to financing.
IRENA and the Indian G20 presidency jointly released the "Low-Cost Energy Transition Finance” report, which delves into the crucial role of affordable financing in driving the global energy transition and provides a comprehensive toolkit to accelerate the initiatives. Mexico, as a member of the G20, can use the toolbox as it faces the challenge of financing its energy transition while ensuring it is affordable and accessible.
Canadian energy company TC Energy Corp's North Baja Pipeline unit has received approval from the US Federal Energy Regulatory Commission (FERC) to start the North Baja natural gas pipeline expansion in Arizona and California. The project will cost approximately US$127 million and will provide increased natural gas supply to Mexico, including to Sempra Energy's Costa Azul LNG export plant.
IMCO reported that the Program for the Development of the National Electric System (PRODESEN) 2023-2037 artificially increased clean energy generation figures. IMCO claims that PRODESEN aims to achieve clean generation goals through regulatory modifications instead of providing a credible critical path to increase the share of renewable energy in