Mexican LNG Boosted by Sempra, USMCABy Cas Biekmann | Thu, 07/16/2020 - 16:45
In Mexico, natural gas is attracting investment in light of President López Obrador´s meetings to celebrate the signing of USMCA. COVID-19 saw emissions drop significantly, but more work remains to be done to ward off catastrophic climate change. In other news, CFE cancelled four tenders for power plants. Internationally, Brazil achieved the major landmark of having 6GW of solar energy installed, while US presidential candidate Joe Biden promises to spend big on clean energy and infrastructure. Read all about it in your weekly roundup!
Mexican Pipeline Gas and LNG Boosted by Sempra, USMCA
Even though Mexico does have the capacity to exploit its own natural gas resources, drilling for gas requires a lot of investment. Importing gas from the US is Mexico’s preferred strategy. As gas trade remains steady and even appears to be increasing according to S&P Global, countries on both sides of the border aim to collaborate to update and construct infrastructure to support this mutually beneficial exchange.
One such example comes from Sempra Energy, who announced investments ranging from US$1.9 billion to US$2.4 billion in Mexico, working with its Mexican subsidiary IEnova. Further investment will be aimed at storage, transportation and distribution for the US-Mexico border region, in conjunction with Mexico’s CENAGAS.
Why COVID-19’s Emissions Drop Is Not Enough
Due to worldwide lockdowns induced by COVID-19, polluting emissions have dropped drastically. This is good news as it provided people with an unusual glimpse into what a cleaner horizon may actually look like. But experts warn that the drops are no cause for celebration, as based on reports from Bloomberg News and National Geographic. The somewhat gloomy outlook on what was a positive spin on COVID-19’s impact is based on two main factors: the economic damage sustained while ‘achieving’ the emissions drop and the continued piling up of carbon dioxide in the atmosphere. This is especially the case in Mexico’s more polluted areas, such as its capital.
CFE Cancels Four Turnkey Power Plant Tenders
Yesterday, Mexico’s CFE cancelled four tenders for turnkey power plant projects that were to be paid out in one installment. The projects include 284 CG Los Humeros III - Phase B, 347 CC Salamanca, 323 CC San Luis Potosí and 351 CCI Baja California Sur VI, as reported by Energía a Debate.
Brazil Achieves Landmark of 6GW of Installed Solar Capacity
Brazil’s solar energy association ABSOLAR announced last week that solar power generation capacity in Brazil now reaches 6GW, according to a report by Renewables Now. Although the balance between utility-scale projects and Distributed Generation (DG) is quite even, DG leads with 3.1GW. Investment since 2012 has been around US$5.6 billion. What is more, the trend of installing solar energy is predicted to grow further.
US Presidential Candidate Biden Promises US$2 Trillion Clean Energy and Infrastructure Investment
GreenTech Media reported that Biden promised to not “just tinker around the edges.” Instead, the presidential candidate assured massive investments in solar, wind, batteries and transmission. At the moment, the US invests around US$100 billion per year in renewables, meaning that this is a significant expansion of the budget. Biden recognized that the Obama administration, of which he was Vice President, invested in clean energy and reaped significant benefits. This despite a lingering economic crisis, a situation to which Biden draws parallels talking about the current economy.