Image credits: Gobierno de México
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News Article

US Responsible for Blackouts / Decree Lowers PEMEX Taxes

By Paloma Duran | Thu, 02/18/2021 - 11:13

 Minister of SEDENA has COVID-19. President Andrés Manuel López Obrador wished a fast recovery to Minister of National Defense (SEDENA) Luis Cresencio Sandoval, who tested positive for COVID-19. López Obrador explained that Cresencio, who is in charge of the logistics for the transportation of COVID-19 vaccines, has waited his turn to get vaccinated despite his position and power. “He was not vaccinated in secret nor in public, as is happening in other countries. Those bad examples do not happen here,” said López Obrador. On Wednesday, Cresencio reported that he had COVID-19. On his Twitter account, he wrote, “I will continue with my duties isolated from home. I am undergoing medical treatment and I am counting on SEDENA officials to continue working for Mexico,” El Financiero reported.

CFE is not responsible for blackouts. López Obrador questioned the criticism and accusations against his government and CFE after the blackouts that hit parts of Mexico this week. López Obrador explained that the problem with electricity is due to a gas supply problem in the US. "Although the problem originated in Texas, all the accusations are directed to CFE and the Mexican government," he said. In addition, López Obrador said his political opponents were taking advantage of this situation to attack his government.

Previous governments created dependence on US natural gas to produce electricity. Director of CFEnergía and CFE Internacional Miguel Reyes Hernández explained that Mexico depends on US natural gas to generate energy because previous administrations signed several contracts with foreign companies. “The contracts were agreed in the last two administrations with private gas pipelines. We have 18 transportation agreements and 24 supply agreements with the US, which have a duration between 15 and 25 years,” Reyes said. He highlighted that previously, contracts with CFE represented less than 10 percent of international contracts and explained that this is one of the reasons for gas supply problems.

AMLO asks Mexicans to reduce electricity consumption. López Obrador called on the population to reduce electrical consumption from 6 p.m. to 11 p.m. to guarantee its supply across the entire country. López Obrador explained that demand is highest during these hours; therefore, consumption must be reduced to be able to supply energy without interruptions. “Mexicans must help us by consuming less energy; the problem is practically solved, but we have to be prepared for any other situation,” López Obrador said. The president emphasized the importance of strengthening PEMEX and CFE to ensure energy security and stop depending on other countries.

Ships with liquefied gas will arrive in Mexico. Reyes announced that between today and tomorrow, two ships with liquified gas would arrive in Manzanillo, Colima, and Altamira, Tamaulipas, to supply gas to the states affected by the lack of US natural gas imports. “CFEnergía made the decision that the ships would arrive on Thursday and Friday. We are highly dependent on US natural gas and it is time to change that because there is a high vulnerability by relying only on one source of energy,” Reyes said. SENER reported yesterday that the first ship with liquefied gas had arrived at the port of Manzanillo. The gas was destined for CFE’s generation plants.

AMLO announces decree to reduce PEMEX tax payments. López Obrador announced that a new decree will soon come into force to reduce the payment of taxes by PEMEX and CFE. "In the case of PEMEX, a decree will enter into force to reduce its tax payments to the Ministry of Finance and Public Credit (SHCP). Before the SHCP took everything away from PEMEX, the money that PEMEX produced was used to pay taxes. Now there is a process to eliminate the tax burden, which will help improve its situation,” López Obrador said.

AMLO applauds TEPJF's resolution to allow talk about elections at La Mañanera. López Obrador applauded the decision of the Federal Judicial Electoral Tribunal (TEPJF) to remove restrictions and precautionary measures to talk about the upcoming elections in his morning conferences. "I am pleased that the tribunal has taken this resolution to neither limit nor censor Las Mañaneras." López Obrador added that he is proud and grateful that public institutions are functioning freely and independently.

Click HERE for full transcript in Spanish

The data used in this article was sourced from:  
Gobierno de México, Milenio, El Financiero
Photo by:   Gobierno de México
Paloma Duran Paloma Duran Junior Journalist and Industry Analyst