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News Article

Private Sector Offers US$92 Billion Investment in Energy

By Ricardo Guzman | Thu, 03/05/2020 - 14:38

Private sector players in Mexico have been working on a package of proposed energy investment for the government worth almost U$92 billion, according to a document disclosed by Reuters.

Over 275 projects to be carried out between 2020 and 2024 covering energy sector areas from power generation, storage and transportation to exploration and production of natural gas. The package would contribute to the National Energy Plan that the federal government will present in a few weeks.

Reuters reported that the projects were decided after talks between the Business Coordinating Council (CCE) and dozens of companies, including Royal Dutch Shell, IEnova, Engie and Enel. Unofficial reports state that CCE Head Carlos Salazar and the Mexican Business Council (CMN) Head Antonio del Valle, presented the plan on Monday to Alfonso Romo, Head of President’s Office.

The Secretary of Energy Rocío Nahle told Reuters she will discuss the plan with the President López Obrador in the coming days.

The president, Nahle and Federal Electricity Commission (CFE) Director General Manuel Bartlett have been pushing for a stronger role for the state in the energy sector, but others in the cabinet, including Alfonso Romo, want the government to open up the sector to more private capital, to boost jobs and economic growth.

While a CCE spokesman said there are still projects and potential investments under discussion, an IEnova source said the company had actively worked with CCE to collect feasible projects.

The plan aims to create more than 400,000 direct and indirect jobs and the proposed projects will be concentrated mostly in Veracruz, Oaxaca and Yucatán.

Last Tuesday Alfonso Romo said at a press conference that the government was reviewing which projects would be included in the long-awaited energy plan. Romo also remarked that Mexico needed to do more to encourage growth.

Ricardo Guzman Ricardo Guzman Editor