US and Canada Question Mexico’s Energy Policy

Inflated gas prices as a result of the February storm led to a further legal dispute for CFE. Trade representatives voice concerns over Mexico’s energy policy. In other news, Sonora is examining the viability of a solar project in conjunction with the federal state. Read this and more in the weekly roundup!

Mexico

Whitewater Midstream Clashes with CFE over Natural Gas Payments

Whitewater Midstream, a US-based gas company, has started an international arbitration case against CFE for failing to pay its natural gas supply. Just like in a  previous case involving Goldman Sachs, the dispute involves February’s price hike following a freak winter storm in Texas.

Whitewater Midstream won a supply contract with CFE in 2016, following the 2014 Energy Reform. Coverage on the topic by El Pais suggests that this contract is part of the current government’s grievances against former agreements, which it says harm CFE and could be linked to corruption.

US and Canada Express Concern over Mexican Energy Environment

During an event marking the one-year anniversary of the new USMCA pact, trade ministers from the US and Canada voiced their concern over Mexico’s energy policy, which they see as sidelining private investment in order to favor state-owned industry.

Sonora, Federal Government Evaluate Solar Power Plant Development

With a potential investment of US$2 million, López Obrador tasked the state of Sonora to evaluate whether to develop a solar plant by the end of 2024. The government would finance the project partly. The solar project could sell energy to Baja California, which struggles to meet its growing demand and therefore, imports energy from the US.

What to Take Away from PRODESEN 2021 – 2035

On June 30, Mexico’s Energy Ministry SENER published online its PRODESEN sector development plan for 2021 – 2035. Following last year’s 2020 – 2034 plan, PRODESEN highlights several key developments in Mexico’s energy sector. Important implications for renewable energy development, hydroelectric capacity renovation and combined cycle power plant developments are among the main takeaways.

Suspension Against Energy Reform Lifted

A court has lifted an indefinite judicial suspension issued against a reform of the electrical industry law (LIE) pushed through congress by President Andres Manuel López Obrador earlier this year. The hitherto suspended reform functions to prioritize state-owned utility CFE to the detriment of private power producers in the market.

Generac to Offer Low Emissions, Smaller Expenses

Distributed generation (DG) produces electricity on a small scale and connects at almost any point in an electrical system, said Fernando Velasco González, a mechanical-electrical engineer who has experience in the implementation of comprehensive energy efficiency solutions at Generac Mexico’s webinar held on May 13.

Analysis: What Lies Ahead for Mexico’s Utility-Scale Wind Development?

With a new government, a different attitude arose toward the renewable energy industry, slowing down new wind energy development to a grinding halt. Regardless of the short-term challenges, MBN industry experts think wind energy’s long-term potential remains attractive.

PEMEX to Distribute Liquefied Petroleum Gas (LPG) to Consumers

President López Obrador said he aims to create a new business within PEMEX that will distribute LPG, used widely for cooking and heating, directly to consumers. LPG prices have increased up to 30 percent in some parts of the country. The President accuses private players of holding on to too high a margin as he seeks to “rescue” the NOC through new business avenues.

International

Porsche Asks its Providers to Use Renewable Energy

German sports car maker Porsche is pushing to cut CO2 emissions in its supply chain. The company asked its approximately 1,300 suppliers to exclusively use renewable energy in the manufacture of components, starting July 2021.