Sonora to Build LNG Plant; CRE Could Restart CEL Debate
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Sonora to Build LNG Plant; CRE Could Restart CEL Debate

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Thu, 05/11/2023 - 10:59

Mexico Pacific Limited will build a liquified natural gas (LNG) plant in Sonora, announced President López Obrador. Moreover, CRE is reportedly considering reopening the debate surrounding the concession of Clean Energy Certificates (CEL) to CFE’s generation plants. Meanwhile, Iberdrola’s legal dispute continues.

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Mexico Pacific Limited to Build LNG Plant in Sonora

Mexico Pacific Limited will build a gas pipeline and liquefaction plant in Sonora, with an investment of up to US$14 billion. The company is already building a 14.1 million t/year LNG export terminal in Puerto Libertad. “The company plans to ship out of the Pacific, because its main market is in Asia," says Marcelo Ebrard, Mexican Foreign Minister.

CRE Seeks to Grant CELs to CFE Plants

CRE could reopen the debate on granting CELs to CFE’s generation plants. CRE said that it will discuss the criteria for these certificates based on the requirements for 2021. “CELs must become mechanisms that guarantee the settlement of new investments in our country,” says Ángel Jiménez, Commissioner, CRE. He also highlighted the importance of accounting all clean energy that derives from the national energy system.

Dispute Between Iberdrola, Mexican Government Continues

Last year, Iberdrola was fined US$513 million by CRE for the alleged self-supply contracts of energy without formal permits. The company has denied any wrongdoing. While Spanish electric company Iberdrola has agreed to sell its power plants to the Mexican government, the company is still dealing with legal trouble in Mexico.

The Social Dimension of the Sonora Plan

Rafael Cabanillas, Director General, Energy Commission of Sonora, highlighted the social dimension of the Sonora Plan. The plan emphasizes social development with state level resources and private participation. “This project strives for the country’s energy sovereignty through the use of national resources in a sustainable way, to increase the population’s standard of living, improve the economic competitiveness of the region and tackle energy poverty,” says Cabanillas.

Sargassum Could be Used to Produce Electricity

Mexican lawmaker Laura Contreras, a deputy from the PAN party, has proposed a modification to the Law of the Federal Electricity Commission (CFE) that would allow the use of sargassum as biomass to produce electricity. The proposal is still in draft form.

Certification Challenges Remain in Green Hydrogen Industry

Mexico's potential to build a green hydrogen economy is being hindered by a lack of proper infrastructure, according to experts. TÜV Rheinland warns that Mexico is 15 years behind other countries in the green hydrogen industry, potentially impacting the country's ability to achieve its climate goals.

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