LIE Experiences Setbacks in Court

Two federal judges have extended the first general suspension against the Electricity Industry Law after it was reactivated in April by Mexico’s Supreme Court. Meanwhile, Sempra and CFE announced a joint venture to further strengthen Mexico’s LNG infrastructure. In other news, the Mexican Hydrogen Association (AMH2) signed a new MOU with a Japanese trade organization to promote green hydrogen.

Ready for more? Here is the Week in Energy!

Mexico

Judges Grant General Suspension Against LIE     

Judges Rodrigo de la Peza and Juan Pablo Gómez Fierro extended a general suspension against the Electricity Industry Law (LIE). The judges argued that because a previous decision by the Supreme Court did not reach the majority to either strike down or legitimize the reform, they can now suspend several sections of the LIE. The amparos enter in general effect, so they will be valid to all market participants. The government still has the option to appeal against these decisions.

Sempra, CFE Join Efforts to Consolidate LNG Development

State electric utility CFE and Sempra Infrastructure, a subsidiary of the US company Sempra, announced several agreements to advance the development of natural gas infrastructure projects in Mexico. The joint venture aims to strengthen Mexico’s energy infrastructure and North America’s energy integration, boosted by growing opportunities in the international natural gas market.

CFE and Proman Signs Gas Contracts         

CFE shared news that two of its subsidiaries signed contracts with a subsidiary of Switzerland-based Proman for the supply of 81 billion BTU of natural gas per day for a future fertilizer plant. Gas y Petroquimica de Occidente is building the plant in Sinaloa, an important agricultural producer in Mexico. The plant is set to produce 2,200t/d of anhydrous ammonia in a first stage.

AMH2 Will Collaborate with Japan to Promote Green Hydrogen In Mexico

The Mexican Hydrogen Association (AMH2) established Memoranda of Understanding (MOU) with the Japan External Trade Organization (JETRO) in Mexico and the Interoceanic Energy Cluster. The MOUs will allow for the exchange of information, sharing of experiences and promotion of various initiatives related to the green hydrogen industry.

Thermal Runaways Risk System’s Long-Term Output     

The photovoltaic industry is constantly evolving, employing technology that drives improvements in module efficiency. Recently, strong competition has pushed the development of PV panels able to manage higher electric currents. Despite the benefits for power, however, increased currents create risks related to module reliability that could damage a power plant’s operations, countering the initial advantages. As such, reasonable parameters must be considered in module designs, incorporating current efficiency and panel safety.

International:

US Bets on Offshore Wind in the Gulf of Mexico

The Biden administration will pursue the development of offshore wind energy in the Gulf of Mexico as part of its plan to address climate change and consolidate the US as a leading renewable energy powerhouse. The US Gulf of Mexico’s first offshore wind farms will be developed off the coasts of Texas and Louisiana, traditional hubs for oil and gas production.