Energy Industry Still Strong: The Week in Energy

The industry proves it is preparing to take advantage of nearshoring despite challenges. While the energy dispute remains active, Sonora is one of the Mexican states that keep investing in its energy infrastructure to be able to allocate investments.

Ready for more? Here is the weekly roundup!

Energy Dispute Remains Pending, CFE Reports Positive Results

Mexico’s Minister of Economy, Raquel Buenrostro said that following a Memorandum of Understanding (MoU) originally presented in October 2023, Mexico has finally resolved its energy differences with its northern neighbor.

According to Buenrostro, Mexico only awaits the official withdrawal of the consultation panel under USMCA. However, the energy dispute remains a focal point in president Joe Biden’s 2024 trade agenda. The US also reported on the consultations to address concerns over measures that favor CFE and PEMEX. These measures are perceived as a way to undermine American companies and US-produced energy, contravening USMCA obligations.

While Mexico’s energy policy remains under scrutiny, CFE reported its highest income in six years. The positive outcome can be attributed to a 3.8% growth in total income and a 13.4% reduction in the cost of sales compared to 2022.

Sonora Continues Investing in Energy Infrastructure

Sonora is making strides toward becoming an energy hub, fostering sustainability as it works toward the energy transition. The Sonora government just announced that Amigo LNG will invest US$3.4 billion to develop another gas liquefaction terminal at the port of Guaymas, under the leadership of Alfonso Durazo Montaño, as part of the Sonora Plan. This investment aims to establish the state as an international hub for gas liquefaction. Construction of this second project is set to begin in July. 

The Industry Calls for Regulatory Action

The International Chamber of Commerce Mexico (ICC México) made an urgent call for the publication of Clean Energy Certificate (CEL) requirements before the end of March. The suspension of various energy reform instruments, including CELs, underscores the need for prompt action, says the ICC.

CRE is taking steps to standardize EV charger tariffs, while a regulatory framework is still lacking. CRE highlighted the need for regulation for electromobility to ensure the proper functioning of the market.