TransCanada Moves Into Mexico With $800 Million Project

08/02/16 Bloomberg

TransCanadaTransCanada Corp. is placing a bet on Mexico’s demand for fuels.

The Calgary-based pipeline owner is joining with the Mexican company Sierra Oil & Gas to build an $800 million marine terminal and pipeline in the Mexican port of Tuxpan, the companies said in a statement. The project will transport gasoline, diesel and jet fuel to central Mexico.

Mexico, the largest importer of U.S. fuel, gets an infrastructure boost. The nation relies on imports for 55 percent of its gasoline needs, according to June data from Petroleos Mexicanos, the state-owned oil company. Pemex has struggled to process enough crude at its six refineries and has said it’s seeking partners to help with operations and improvements.

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Mexico’s IEnova says recasts Pemex deal to buy pipeline stake

07/12/2016 Reuters

5337912858_1b19aea036_mIEnova, the Mexican unit of U.S.-based Sempra Energy, said on Tuesday it had restructured a deal to buy state-run oil company Pemex’s 50 percent stake in pipeline company Gasoductos de Chihuahua for $1.108 billion.

In December, Mexico’s Federal Economic Competition Commission (COFECE) said it objected to a previous incarnation of the deal, as Pemex had failed to sell its stakes in a liquefied petroleum gas pipeline and a natural gas pipeline, as ordered by a previous anti-trust agency.

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Mexico’s Ever Growing Natural Gas Market

07/02/16 Forbes 

natural gas drillMexico is a very fast growing natural gas market, and imports from the U.S. could reach 8-10% of current U.S. production much faster than most realize. The 2013 Energy Reforms are a historic opportunity for state-owned Pemex to increase oil and gas production and lift the economy. Pemex has been forced to unfairly provided the government with 35-40% of its budget. Too lengthy of a subject to detail here (check here, here, here), but the reforms and the Implementation Plan should install a fully competitive Mexican natural gas market around 2018.

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Mexico’s Fuel Market Is Open, But the Imports Aren’t Flowing

06/28/16 Bloomberg

stock-footage-montage-of-clean-energy-fossil-fuel-pollutionSoaring fuel theft, violent protests over shortages and a lack of independent infrastructure have some investors questioning whether the Mexican gasoline sector is ready for a surge of U.S. imports.

The country enacted legislation in April allowing companies other than state-owned Petroleos Mexicanos to import fuel for the first time since the 1930s, nine months ahead of the January 2017 start date it had originally targeted for reforms. Mexico has since awarded permits to import a combined 135.6 billion liters (853 million barrels) of gasoline and diesel.

No fuel has been brought in using those 12-month permits, however, as the industry grapples with regulatory and logistical obstacles, according to Jose Angel Garcia Elizondo, head of Mexico’s national gasoline retailers association Onexpo.

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Mexico’s Pemex on alert for any new road blockades at top refinery

06/22/2016 Reuters

pemexRowdy teacher protests in southern Mexico have caused delays and bottlenecks in transporting fuel from the country’s top refinery in Salina Cruz, and state oil giant Pemex is on alert for new roadblocks, a company official said on Wednesday.

Blockades on Tuesday caused long lines of tanker trucks unable to transport fuels for hours.

Late last week, Pemex warned that road blockades by protesters could cause the facility’s storage tanks to reach their limits and potentially force the company to shut the refinery, Pemex’s biggest with a capacity to process 330,000 barrels of crude per day.

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KKR, Mexico’s Pemex agree to $1.2 billion sale, leaseback: sources

06/16/16 Reuters

PemexU.S. private equity fund KKR and Mexico’s Pemex are wrapping up details on a $1.2 billion sale and leaseback agreement, according to sources familiar with the operation, as the distressed state-owned oil company scrambles for extra cash.

Pemex [PEMX.UL], which has suffered from a prolonged oil rout, will sell some of its infrastructure assets to the fund, but will continue to operate and maintain them for 15 years and pay rent to KKR. Pemex plans to repurchase the assets after the lease ends, one of the sources said, speaking on condition of anonymity.

The assets include pipelines, a system of subsea cables, two non-drilling platforms and a facility for gas compression, according to IFR, a Thomson Reuters publication.

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Statoil May Consider Pemex Partnerships in Deep Waters, VP Says

06/13/16 Bloomberg

deepwatersStatoil ASA may seek to partner with Petroleos Mexicanos in Mexico’s deepwater fields as the producer looks to gain a foothold in the country’s recently opened energy market.

“We see opportunities to bid on deepwater farm-out agreements with Pemex if the terms and conditions are right,” said Tore Loseth, vice president of Statoil Exploration in the U.S. and Mexico, on the sidelines of an oil conference in Monterrey on June 10. “But we need to know more about how the process will run before we can properly evaluate these.”

Pemex and Mexico’s energy ministry announced plans last week to farm out the Trion field in the Gulf of Mexico -– an area believed to contain about 485 million barrels of reserves and estimated to cost $11 billion to develop. While the agreement will be in the form of a license, the details of the contract have yet to be spelled out.

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