The Week in Oil and Gas: PEMEX Closes Doors on Privates
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The Week in Oil and Gas: PEMEX Closes Doors on Privates

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Peter Appleby By Peter Appleby | Journalist and Industry Analyst - Fri, 12/20/2019 - 17:28

PEMEX Pipelines Closed to Privates

A federal court ruling has decided that PEMEX will no longer be forced to share unused pipeline and terminal capacity with private companies. The original legislation was introduced with the Energy Reform and was intended to foster competition in the retail sector.

Private players are concerned that the move restricts competition in the retail market.

 

CRE Will No Longer Regulate Wholesale Gasoline Prices 

By choosing to unanimously approve agreement A/057/2018 without modification, CRE has decided to no longer set maximum prices at which PEMEX can wholesale or store gasoline. These maximum prices used to be set on a daily basis as established by the Energy Reform.

Analyst Ramsés Pech said the move will give PEMEX more control over its downstream client portfolio but will also create a problematically uneven situation in the market. Fuel retailer association ONEXPO has called for an extraordinary session with CRE commissioners to clarify this new regulatory paradigm.

 

Gas Import Value Falls

Figures from SENER and Banco de México suggest the value of gasoline imports dropped 10.5 percent in October 2019 compared to 2018. The average daily import amount, 521Mb, also decreased by 12.3 percent.

This will offer pleasing reading for the administration, whose goal it is to decrease the need for imports of refined fuel to instead build energy sovereignty in Mexico.

 

Crude Prices Rise

Crude prices hit their highest level in three months on Monday, as prices closed up at US$65.34/b for Brent, US$60.21/b for West Texas Intermediate and US$55.43/b for Mexican Mayan Crude. This was an increase of 12 cents, 14 cents and 49 cents respectively.

Analysts point towards Friday’s announcement by Chinese and US governments that the two countries had reached “phase one” of an agreement to reduce tariffs that each country had applied to one another.  

 

PEMEX Places Stock Market Offer

PEMEX has launched a five-year issue of stock exchange certificates, known as Ceburs, worth some MX$5 billion (US$265 million) on BMV.

The company is using the certificates as a way to refinance some of its 2019 debt. The last time PEMEX placed an issue on the BMV was in March 2016.

 

 

 

 

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