The Future of the Energy Sector in Mexico

Mexico is advancing a comprehensive overhaul of its energy framework for 2025, with legislative changes, new gas and power strategies, and investment plans designed to strengthen the sector’s competitiveness, said Rocío Abreu, President of the Energy Commission,Chamber of Deputies at Mexico Oil and Gas Summit. “At the Commission, we have an obligation to act as a hinge between the executive, regulations, and project execution,” said Abreu.

The Energy Commission of Mexico’s Chamber of Deputies is playing a central role in shaping the country’s rapidly evolving energy policy, especially in light of constitutional reforms, secondary legislation, and the emphasis on state control and regulatory overhaul. Created with the installation of Deputy Abreu as its chair in November 2024, the Commission is tasked with steering initiatives related to clean energy, environmental regulations, and energy reforms. 

According to Abreu, there are key strategic pillars guiding energy policy including a renewed legal and institutional framework, an integrated oil strategy, modernization of the electricity sector, gas integration, energy as a driver of competitiveness, and sustainability as a policy and business criterion.

On the legal front, Congress has enacted 11 laws, including eight new and three amended statutes, to provide clear rules and support strategic alliances for the energy sector. Among them are reforms to the law governing state-owned companies, which reaffirm PEMEX’s role as the state operator in exploration, production, and refining while introducing fiscal changes to improve financial viability. The new system reduces PEMEX’s overall tax burden from previous levels above 50% to a flat 30%.

Abreu also emphasized the growing importance of gas in Mexico’s energy mix. With declining conventional oil reserves and rising costs for unconventional wells, gas has become a strategic priority for power generation and competitiveness. 

“Oil fields are producing less every day; they are much more complex, unconventional wells, and they are also significantly more expensive,” explains Abreu.

Mexico’s gas strategy also seeks to reduce dependency on US imports by incentivizing domestic production and petrochemical development. Current petrochemical capacity stands at 27,500t/d, with investments of over MX$78 billion (US$4.33 billion) projected between 2025 and 2035 in ammonia, fertilizers, and secondary petrochemicals. Four cogeneration plants are planned to add more than 2,700MW of capacity.

The electricity sector reforms grant CFE a 54% production share, leaving 46% to private operators. Meanwhile, CRE has been dissolved, with permitting responsibilities transferred to the National Energy Commission to streamline procedures and shorten approval times. Investment of MX$83.5 billion is projected for transmission lines between 2025 and 2028 to relieve congestion and improve reliability in industrial corridors.

Mexico is also preparing to expand generation capacity by 29,000MW by 2030, with most projects led by CFE but with space for private initiatives. “These efforts align with President Claudia Sheinbaum’s plan for 100 new industrial parks, which will require a reliable power supply,” explains Abreu.

Abreu underlined that contracts signed under previous frameworks remain valid and are being respected, while new mixed contracts with private companies are being introduced to support exploration, mature field development and unconventional projects. She also pointed to ongoing payments of PEMEX invoices under a financing scheme that avoids transferring debt to the state.