SENER Presents 2022 Analysis at the Senate

Rocío Nahle, Mexico’s Minister of Energy, presented the Senate with a report of the energy ministry’s activities in 2022. The report covered Dos Bocas’ advancements, growing gas infrastructure, refining, accountability on electricity access and renewable energy.

Nahle started her presentation by underlining the commitment of the Ministry of Energy (SENER) to bring balance to the national energy matrix to strengthen energy security. She added that the energy sector is of public interest to guarantee that Mexicans have stable energy at accessible prices.

As for the Dos Bocas-based Olmeca Refinery, SENER reported that the project’s development has generated more than 207,000 jobs, has a 96.2 percent advancement and an investment advancement of MX$235.79 billion (US$11.89 billion). Nahle recently reported that security processes were being carried out before it could go into operation. SENER reported that all the equipment and external infrastructure is online, including the gas pipeline, an aqueduct, the crude oil supply line as well as the central control room, administrative area, laboratories and workshops. Thirty-four out of 39 substations are already finished, too. Dos Bocas is currently in the integration phase and PEMEX will begin taking over the project next month.

According to SENER’s production forecast, private companies have invested MX$8.52 billion (US$430.52 million) on 101 exploration and production contracts. Meanwhile, PEMEX has invested MX$3.76 billion (US$190 million) in its shared farm-out contracts, as the NOC produces 117Mb/d.

SENER reported that according to the National Natural Gas Control Center (CENAGAS), the capacity to interconnect and distribute gas increased, widening CFE’s ability to sell its surplus supply to the industrial sector. Now, 53 percent of this contracted gas is placed in the market in comparison to the previous 21 percent. SENER also declared its joint strategy with CRE to set a maximum gas price based on geographical zones with international prices as a reference, a success.

As a result of the strategy, SENER avoided price hikes and slowed inflation. Nahle reported that thanks to the  Gas Bienestar program, a total of 678,000 LP gas tanks have been sold in Mexico City. Experts have criticized the project’s focus on the country’s capital as these resources could be allocated best in other zones of the country.

Furthermore, fuel production increased by 66Mb/d on average compared to 2021. In addition, the rehabilitation plan for the National Refining System accounted for 49 major repairs. A further 118 repairs are still underway, amounting to a 94 percent completion of corrective maintenance.

Furthermore, SENER reported that 99.25 of the population had access to electricity. This year, 29 percent of energy was generated by clean sources. CFE is reported to produce 57 percent of the country’s electricity from different sources, and it plans to invest US$9 billion in infrastructure, including the biggest PV solar plant in Latin America. According to Bloomberg, Mexico’s clean energy production is 3 percent below its 2022 goal. While SENER stated that it respected the last administration’s long-term power contracts, the government canceled energy tenders and prioritized the rescue of CFE and PEMEX, to the detriment of private clean power developments.