Government Publishes Details of Private Sector Investment PlanBy Cas Biekmann | Tue, 09/08/2020 - 09:15
President Andres Manuel López Obrador’s infrastructure plan has been revealed in a report by the Ministry of Finance and Public Credit (SHCP). “It is a matter of agreeing on this plan. I hope that this will be announced before Sept. 15,” said the president. In recent weeks, the government had set out to identify in which sectors private companies would want to invest and boost Mexico’s economic development.
In the document published by Energía a Debate, a portfolio of 168 infrastructure projects have been outlined. Most of these are related to communication and transportation infrastructure. Seven of the projects are still in the early stages of commissioning and construction, 10 have a defined execution plan authorizations and permits in the pocket. 20 more projects are in the initial evaluation phases, whereas 22 are in the final evaluation phase. A total of 109 projects remain early investment opportunities for the moment.
Examining the energy sector, not a single project mentioned is able to flaunt any progress. Nonetheless, SHCP included an additional list of 25 energy projects in the document. Adding up all the numbers, the energy sector has a potential for MX$452 billion of investments.
Some of the projects published in the report have the potential to become flagship initiatives of the López Obrador administration. They include the conversion of Cangrejera to a refining plant, an ethane terminal in Pajaritos, the expansion and interconnection of natural gas pipelines in Mexico’s Southeastern area, natural gas liquefication plants in Topolobampo and Salina Cruz, an ammonia plant in Topolobampo, a natural gas pipeline in Chiapas, further updates to the Tula refinery and finally a new combined cycle generation power a plant in Tapachula.
As reported earlier on MBN, the Business Coordinating Council (CCE) and CONCAMIN signaled that up to 285 energy projects are waiting on green light from SENER, but have not been discussed by SHCP as of yet. Nonetheless, progress in this regard could be made for the projects, of which 74 are related to fuels, 48 to gas and 157 inside the electricity sector. The potential investment of these projects totals MX$2.84 billion.
During his daily press conference, López Obrador said that he is in favor of promoting new projects with Mexico’s private sector regarding energy and communications as long as the projects show clear benefit to Mexico’s federal goals. The president mentioned Sempra Energy and their local presence IEnova as an example, with its plan to export surplus national gas from Baja California to Asia.