CFE Taps Private Sector for Natural Gas ProjectsBy Cas Biekmann | Wed, 09/15/2021 - 17:34
CFE looks toward the private sector to build two crucial projects, as the government continues its support for the state utility in 2022. In other news, Queretaro presents its energy agency while the issuing of generation permits continues to be frozen. Read this and more in the weekly roundup!
An upcoming constitutional reform pushed by President López Obrador aims to limit private participation in the electricity market by 46 percent, with CFE gaining the remaining 56 market share. Industry experts doubt the government’s capability to make the sweeping reform a reality.
In addition, the latest budget package for 2022 features a proposal that exempts CFE from paying parts of its state dividend so that it can keep profits for its own benefits. Among CFE’s plans are the construction of two pipelines, six combined cycle power plants, a hydroelectric capacity overhaul and new projects in solar, wind and nuclear energy. According to BNAmericas, an LNG export facility is in the works too.
CFE reported it is seeking private companies to formally express interest in two of its key projects: a 500 MMcf/d pipeline going from Veracruz to Oaxaca and a floating LNG terminal in Salina Cruz, Oaxaca, near said pipeline.
Governor-elect Mauricio Kuri González announced Queretaro’s new Energy Agency, which has been tasked to create energy policies aimed at boosting the competitiveness of the state and achieve a higher energy efficiency. The agency’s creation has received praise from entities like COPARMEX.
In a recent auction carried out by CFE, representatives looked over their former preferential voltage meter supplier Industrias Unidas (IUSA), and chose Chinese company, Waison Group.
El Financiero reported that CRE has not issued permits for electricity generation for a period over 11 months. The last permit granted to a private sector company to generate electricity was given on October 29 to Veolus Servicios Energéticos II to supply its power plants. Since then, CRE has shelved seven requests to be permitted to generate power. In contract, CRE admitted 14 permits this week in the area of natural gas.
During his morning conference, the president of Mexico assured that there was no corruption within regulatory entity CRE, after federal legislators demanded that a complaint regarding corruption should be investigated.
Famous bread maker Gruppo Bimbo renewed its US$1.75 billion revolving credit facility to 2026. The company reported it will use the financing to enhance its sustainability, focusing on clean energy consumption and sustainable water use.
The US Energy Information Administration (EIA) estimated that natural gas prices will rise in the coming months after the damage that Hurricane Ida left in its wake stalled gas production. “We revised our fourth-quarter natural gas Henry Hub spot prices to average US$4.00/MMBtu,” the EIA tweeted, which entails a 16 percent increase compared to August. As a benchmark of gas prices, Henry Hub spot prices could also affect Mexican imports.
Oil and gas supermajor Chevron has increased investments to cut its carbon emissions to US$10 billion. At the same time, the company stated it was not ready to commit to net zero by 2050 just yet.