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Weekly Roundups

Compromise in Electricity Reform Talks Begin to Emerge

By Cas Biekmann | Wed, 02/16/2022 - 13:49

While Open Parliament sessions discuss a far-reaching new energy reform, experts are beginning to see the beginnings of a potential compromise between the government and private sectors. In other news, a CRE ruling is deemed detrimental to Mexico’s natural gas marketing competition.

 

Ready for more? Read the roundup here!

 

MEXICO

Signs of Progress in Electricity Reform Talks Begin to Emerge

Talks between private sector and government concerning President López Obrador’s proposal to reform the energy sector and give greater control to the public sector are beginning to show hints of compromise, reported Reuters. Mexican business leaders said they felt hopeful as a result of positive engagement with a trusted ally of the president. The country’s wish to avoid conflict with the US, confirmed after a visit by US Climate Envoy John Kerry, adds further scope to look for a middle ground perspective.

 

Open Parliament on Energy Reform Extended

The Political Coordination Board (JUCOPO) confirmed its extension on the Open Parliament regarding the government’s energy bill, which will now run until Feb. 28. President López Obrador’s constitutional energy reform proposal would drastically reshape the energy sector, so JUCOPO issued extra time to analyze its extensive impact.

 

CFE to Open Tender for Coal Mining Companies

CFE announced it will soon launch the 2022 coal tender, aiming to obtain multi-year contracts. In addition, CFE defended the government's position to buy coal, since it represents a small percentage of all the energy produced in the country and has proven to be a win-win situation.

 

Mexico and Canada Sign Deal to Develop Green Hydrogen

The Mexican Hydrogen Association (AMH), spearheaded by Israel Hurtado, signed a memorandum of understanding (MOU) with the Canadian Hydrogen and Fuel Cell Association (CHFCA) to foster bilateral cooperation around the development of green hydrogen.

 

S&P Will Stop Evaluating Mexican Infrastructure and Energy Projects

S&P Global Ratings will stop assigning ratings to certain types of structured finance transactions in Mexico, including energy and infrastructure projects. S&P said it cannot comply with new criteria imposed by the National Banking and Securities Commission (CNBV), which demands rating agencies validate the information they receive.

 

Jalisco-Based Company Wins Central Market Solar System Contract

Jalisco-based Fortius Electromecánica will be in charge of constructing the first phase of the 18MW Central Market solar system. The company proposed to build the project for MX$25 million (US$1.3 million).

 

CRE Ruling Deemed Damaging to Competition in Natural Gas Market

Last week, CRE approved a regulation change that could make it more difficult for private companies shipping natural gas to secure capacity in the national pipeline network. State-owned PEMEX and CFE would no longer have to compete for capacity to market gas since their capacity can be flagged as essential.

 

INTERNATIONAL

Multinationals Threaten to Leave Mexico to Comply with Clean Energy Targets

Alberto De La Fuente, President of the Executive Council of Global Companies (CEEG) and President for Shell in Mexico, said that several multinationals have threatened to leave Mexico if the country does not provide them with a positive outlook to reach their green energy goals. CEEG includes leading companies such as GM, Shell and Iberdrola.

The data used in this article was sourced from:  
Reuters, Bloomberg, Energía Hoy, Forbes, NGI
Cas Biekmann Cas Biekmann Journalist and Industry Analyst