April 16, 2014
Re News, 4/15/14
The North American Development Bank has begun disbursing two loans totaling $140m to build a pair of 126MW wind farms in Mexico.Ventika 1 and 2 investors include Mexican cement and aggregates giant Cemex and Fisterra Energy, a company controlled by funds managed by Blackstone.
The energy produced will supply facilities belonging to FEMSA, DEACERO, Tecnológico de Monterrey and CEMEX. The Ventika wind farms are located in the municipality of General Bravo, Nuevo Leon, about 100 miles east of Monterrey. Acciona Energía is building the projects under engineering, procurement and construction contracts, as reported by reNews.
April 14, 2014
United Press International, 4/11/14
French energy company GDF Suez said Friday it signed a memorandum of understanding to develop natural gas prospects in Mexico. Gerard Mestrallat, chairman of GDF Suez, signed the measure Friday with Emilio Lozoya, his counterpart at state-owned Petroleos Mexicanos, known also as PEMEX.
“For GDF Suez, the signing of this memorandum illustrates the participation of our group in developing energy infrastructure in Mexico,” Mestrallat said in a statement. “A central part of our strategy is to accelerate our presence in fast growing markets, and Mexico is clearly a very attractive one.”
PEMEX said in a separate statement the deal with the French energy company lays the foundation for the development of technology that would help curb climate change through energy efficiency efforts and the overall reduction of greenhouse gases.
April 14, 2014
Mexico’s peso posted its biggest weekly drop since January as the country’s political parties wrangled over rules for opening up the energy industry, fueling concern that so-called secondary laws may be delayed. The currency weakened 0.3 percent this week to 13.0425 per dollar according to data compiled by Bloomberg. It was the biggest weekly slump since Jan. 24 after the peso rose 0.2 percent today.
While analysts surveyed by Bloomberg had forecast that the peso would gain an emerging-market best 3.6 percent this year as growth in Latin America’s second-biggest economy quickened, the currency is little changed this year as expansion flounders. Juan Bueno, a lawmaker from the opposition National Action Party, known as the PAN, said in an interview this week that his party hadn’t yet reached an agreement with President Enrique Pena Nieto’s government on oil regulators
April 9, 2014
For the last few years, the challenging security situation has been the headline issue in Mexico. Turf wars between increasingly-fragmented cartels—enfeebled by the capture or killing of high-profile kingpins—not to mention the recent proliferation of vigilante groups, have overshadowed the remarkable progress that President Enrique Peña Nieto’s government has made on other fronts. Last year, Peña Nieto forged a broad political consensus around a set of revolutionary constitutional reforms touching everything from the country’s economy to its educational system to its fiscal management. Reforms to the energy sector have generated particular excitement, opening the door to foreign participation in the country’s energy industry and raising hopes of a new round of growth that will benefit Mexico and foreign investors alike.
These are indeed exciting times for Mexico, but as we explain in a new report, any exuberance about the country’s prospects should be tempered by the hard work that lies ahead. The coming months and years will see the country turn its state-run oil, gas and electricity monopolies into market-driven enterprises and establish new independent regulatory bodies to oversee these industries. Any challenges to the new order will play out before the country’s notoriously fickle judiciary. And there will certainly be challenges: from the staunchly opposed labor unions, political opponents, and any companies who feel they’ve lost out.
April 8, 2014
Market Watch, 4/7/14
Breitling Energy Corporation BECC (the “Company”), a Dallas-based oil and gas exploration and production company, announced today that its CEO Chris Faulkner will participate at the Petroleum Exhibition and Conference of Mexico (“PECOM”) held between April 8 – 10, 2014 in Tabasco, Mexico. Mr. Faulkner will present the closing Keynote presentation on April 10 at 7p.m. local time entitled “The Big Four Resource Plays: An Update from the United States and the Pathway Forward for Mexico.”
Chris Faulkner, Breitling Energy CEO, said, “Mexico is entering a new era of energy exploration as it opens its borders to foreign investment and looks for unconventional oil and gas assets.” Faulkner added, “The prolific Eagle Ford shale extends deep into Mexico and could be the game changing catalyst they need in order to increase domestic production after decades of decline.”
April 7, 2014
Fox News Latino, 4/6/14
Canadian banking giant Scotiabank plans to finance oil industry projects worth $10 billion in Mexico over the next four years, a high-level executive said. Oil giants BP and ExxonMobil are among the companies interested in developing projects in the Gulf of Mexico, Scotiabank’s Latin America director, Paul D’Agata, told Efe.
A large number of mid-sized firms will participate in the huge oil projects, D’Agata, who attended the 77th Mexican Bankers Association, or ABM, annual convention in the Pacific resort city of Acapulco, said. Scotiabank has provided financing for some of the world’s largest companies in the mining, infrastructure, automotive and other industries, the banker said.
April 2, 2014
Top Mexican congressional officials said on Tuesday that the approval of the eagerly-awaited fine print of a landmark energy overhaul will likely be delayed until at least May, meaning Congress would have to call a special session to debate it.
Passed late last year, the constitutional overhaul ended state-owned oil company Pemex’s 75-year monopoly and paves the way for billions of dollars worth of new investments in the country’s lumbering energy sector.
The reform stipulated that lawmakers have until April 20 to approve so-called secondary legislation that fleshes out key commercial and regulatory details of the reform, but Congress appears poised to bust the deadline.
April 2, 2014
The Christian Science Monitor, 4/1/14
The Mexicans living along the dry bed of the Colorado River near its delta on the Sea of Cortez are seeing something unusual: agua. A release of water from a dam at the US-Mexico border means that water is flowing again toward the parched delta of the shared river on Mexico’s Sea of Cortez, and it is bringing joy. Water hasn’t reached the delta in many years.
The goal of the release of 100,000 acre-feet of water is to restore the Colorado River’s flow in Mexico and restore wetlands along the shores of the dry riverbed. Some 300,000 migrating birds once called the delta home.
In building the Glen Canyon and Hoover dams more than half a century ago, the United States started blocking and diverting the Colorado River, eventually siphoning it dry before it could reach its delta. Some 70 percent of its waters go to cropland along its US course. And it slakes the thirst of 30 million people in seven US states and parts of northwest Mexico.
March 31, 2014
The Wall Street Journal, 3/28/14
A telecom bill presented this week by President Enrique Peña Nieto to open up the market to more competition hasn’t pleased many in Mexico: longtime dominant players such as Carlos Slim’s phone company labeled some parts of the bill “confiscatory,” while the heads of the main opposition parties say it doesn’t go far enough. Conflicting views show how sensitive and controversial the subject of Mexico’s telephone and TV markets have become.
Hopes for change are high among Mexicans, who have seen Mr. Slim’s América Móvil and giant broadcaster Grupo Televisa almost monopolizing the industries for decades. Stakes are also high for the companies, which could see their profit margins decrease. Mr. Peña Nieto’s government maintains that the proposed telecom bill is what Mexico needs to make it easier for small players and newcomers to gain market share, ultimately improving service and lower tariffs for Mexicans.
March 28, 2014
Fox News Latino, 03/28/14
Latin America’s largest solar power plant, a facility with 39 MW of generating capacity, has gone online in the northwestern Mexican state of Baja California Sur. The Aura Solar I photovoltaic power plant was inaugurated by Mexican President Enrique Peña Nieto on Wednesday and will supply electricity to the city of La Paz. The energy industry reforms implemented last December will help lead to “more energy generation, cleaner energy and, above all, cheaper energy to help make Mexico a more competitive country,” Peña Nieto said. The goal is to turn Mexico into “a country that attracts greater investment for the development and creation of jobs,” the president said.