Energy reform fears trip up Mexico’s peso

07/13/2021

Source: Reuters

July 13 (Reuters) – Mexico’s peso lost 1% on Tuesday on concerns over more government interference in the energy sector, while most other Latin American currencies fell as rising U.S. inflation raised fears of monetary policy tightening by the Federal Reserve.

Mexican President Andres Manuel Lopez Obrador said he plans to send a constitutional reform to Congress, widely opposed by independent power firms and investors on grounds that it would hurt competition.

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EXCLUSIVE Mexico now ready to welcome private lithium miners

06/02/2021

Source: Reuters

Mexico’s leftist ruling party has dropped plans to nationalize lithium production and is now pushing to welcome private investors to help develop the country’s potential in the metal used to make batteries, the senior lawmaker behind the proposal told Reuters.

Mexico, a major copper and silver producer, is home to large potential reserves of lithium, used in electric vehicle (EV) batteries. Most of it is in hard-to-tap clay deposits that are costly and technically difficult to mine.

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Mexico Moves Closer to Fuel Controls With AMLO’s Bill Approval

04/14/2021

Source: Bloomberg

Mexican President Andres Manuel Lopez Obrador’s controversial proposal to tighten control over the country’s fuel market has cleared the lower house of congress, another step in his long-sought goal of resuming the state’s energy monopoly.

With 292 lawmakers in favor, 153 opposed, and 11 abstaining, the chamber approved in general terms the president’s proposal to give national oil company Petroleos Mexicanos greater control over the recently liberalized fuel market that lured investments from Royal Dutch Shell PlcBP PlcChevron Corp. and Exxon Mobil Corp. After debate on certain articles, the bill will be taken up by the senate, where the ruling Morena party and its allies have a majority.

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Mexico Minister Accuses Fuel Retailers of Pocketing Subsidies

04/06/2021

Source: Bloomberg

Mexico is proposing changes to the country’s fuel laws and will review permits issued to retailers because some gas station operators aren’t passing on subsidies to consumers after a spike in international oil prices.

“There’s a fiscal stimulus maintained by the Finance Ministry at this time, and there are some gasoline retailers that absorb the stimulus, increasing their profit margins considerably,” said Energy Minister Rocio Nahle in a written response to questions from Bloomberg. “We are going to review their permits and act accordingly,” she said.

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Mexico’s New Electricity Law Reverts to ‘Dirtier’ Energy

03/30/2021

Source: Brink

As the world moves away from fossil fuels and toward renewable energy sources, the government of Mexico’s President Andrés Manuel López Obrador (AMLO) is taking a different path.

Driven by the romanticism of Mexico’s nationalization of the oil industry in the 1950’s and what he calls the need for Mexico to be energy self-sufficient, AMLO has made it his mission to unravel former President Enrique Peña Nieto’s 2013 historic energy reform. The reform liberalized the country’s energy sector to attract greater foreign investment and spur projects focused on renewable energy sources.

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Mexican President Uses Energy Nationalism Card Ahead of Key Vote

03/27/2021

Source: Bloomberg

Andres Manuel Lopez Obrador is doubling down on a promise that helped launch him to Mexico’s highest office in a landslide victory.

The Mexican president is trying to scrap a policy that opened the nation’s energy sector, and he’s made it the center of his strategy to keep control of congress in midterm elections just two months away.

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Mexico’s AMLO Pounces on Texas Freeze to Push Nationalist Agenda

03/25/2021

Source: Bloomberg

The deep freeze across the central U.S. last month didn’t just darken 4 million homes in Texas. It also left millions of people across the border in Mexico in the dark for days, disrupted water supplies, forced schools and businesses to shut, and knocked out service to about 800 manufacturing facilities that depend on U.S. shale gas for energy.

Since then, President Andres Manuel Lopez Obrador has turned the crisis into a rallying cry for more energy independence, weaponizing it to advance a nationalist agenda that has implications beyond natural gas imports and threatens tens of billions of dollars of investments in renewable energy by U.S., Canadian and European energy companies. On a large screen behind his press-briefing podium, he called up the image of a recent Wall Street Journal article showing how the power-market deregulation in Texas cost utility customers billions of dollars.

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Mexico Set to Reshape Power Sector to Favor the State

03/07/2021

Source: The New York Times

MEXICO CITY — President Andrés Manuel López Obrador has never been short of criticisms about his predecessor’s legacy. But he has reserved a special contempt for the sweeping overhaul that opened Mexico’s tightly held energy industry to the private sector.

He has called the changes a form of legalized “pillaging,” the product of corruption and a resounding failure. He has suggested that some foreign energy investors are “looting” the nation and that Mexican lawyers who work for them are guilty of treason.

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Mexico’s Senate passes divisive bill to strengthen state utility CFE

03/03/2021

Source: Reuters

MEXICO CITY (Reuters) – Mexico’s Senate passed on Tuesday a divisive bill aimed at strengthening state utility CFE that has angered private businesses and could cause disputes with some of the country’s top trade partners.

The bill was approved with 68 votes in favor and 58 against. The lower house had approved the bill on Feb. 23 without changes and President Andres Manuel Lopez Obrador, who had sent it to Congress, must now sign it.

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AMLO insists electricity bill doesn’t violate constitution but a court challenge is likely

03/03/2021

Source: Mexico News Daily

President López Obrador has dismissed suggestions that a law overhauling the country’s electricity market to favour a state-owned utility is unconstitutional, hours after it was passed by the Senate.

“There is nothing in it that violates constitutional rights, nothing, nothing, nothing,” López Obrador told his morning news conference on Wednesday.

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