Clean Technica – The preliminary results of the much-awaited second renewable energy auction for Mexico were declared last week. Solar dominated, with more than half of the total amount of energy awarded to solar PV projects.
WSJ – Mexico’s opening of its electricity market after decades of state control is driving fierce competition among suppliers of clean energy and pushing prices down, as renewable energies gain traction across Latin America.
Mexico’s government, following the launch this year of a wholesale electricity market under an independent system operator, this year held its first auctions in which companies made bids to sell renewable energy under long-term contracts to state-owned utility Comisión Federal de Electricidad, or CFE, starting in 2018.
On Wednesday, purchase contracts were awarded for 8.9 million megawatt hours a year of electricity from mostly solar and wind generating plants—equivalent to about 3% of Mexico’s current electricity use.
OilPrice – Mexico’s energy secretary said last week at Rice University that the government could begin shale auctions at some point after March 2017, another step forward in the country’s historic opening up of its energy sector. Mexico is sitting on what many think are vast shale oil and gas resources in the north, which are thought to be extensions of the Eagle Ford shale in South Texas.
Reuters – Royal Dutch Shell participated in Mexico’s oil hedging program for 2017, the first time an oil company has taken part in the world’s large commodities hedging program.
Financial Times – Mexico has spent more than $1 billion to lock in prices for oil exports next year to help protect public finances as its underperforming economy faces intensifying international headwinds, including the timing of a US rate rise and the US elections. The government’s annual hedging program seals in a price of $42 a barrel for 2017.
WSJ – Mexican oil regulators on Tuesday approved a bidding process for a dozen exploration and production areas containing mostly natural gas, the sixth auction since the country opened the industry to private and foreign investment. The auction includes 12 onshore blocks, nine in the Burgos basin of northern Mexico and three in the south of the country.
NYT – Eight years after Mexico embraced the fight against climate change, setting off a wind rush in Oaxaca’s Isthmus of Tehuantepec, people in poor, indigenous communities are divided over the benefits of the green revolution.
Platts – Enrique Peña Nieto is scrambling to save the legacy of his much-lauded reform of Mexico’s oil industry as the doors of Mexico’s political cycle close on the president amid electoral defeats, political violence and a tough global environment for the oil industry. Meanwhile, Pemex chief Jose Antonio Gonzalez Anaya seeks to defend the formerly invulnerable castle of the state oil company from what some fear could be imminent collapse.
The Hill – The United States and Mexico are set to begin negotiating a new nuclear power cooperation agreement. The deal would allow American nuclear companies to export their products and technologies to Mexico.
WSJ – The Mexican government launched its second round of oil auctions, offering 15 exploration and production blocks in shallow waters of the Gulf of Mexico as it seeks more private investment to raise the country’s oil reserves and output.
BNA – More than 700 miles of new pipelines in Texas are being built to ship more of the state’s natural gas to Mexico, raising concerns from U.S. environmentalists who want to see low-carbon renewable energy grow instead.
Sentido Comun – Mexico’s government announced a rise of 1.8 and 2.4% for the price of Magna and Premium gasoline respectively, after the weakness of the peso against the dollar and recent increases in international oil markets.
Sentido Comun – Chiapas state could run out of gasoline today because of the sharp shortage that exists after the roadblocks in Oaxaca, preventing the arrival of fuel to the neighboring southern state.
Bloomberg – Mexico enacted legislation in April allowing companies other than state-owned Petroleos Mexicanos to import fuel for the first time since the 1930s. Mexico has since awarded permits to import a combined 853 million barrels of gasoline and diesel. No fuel has been brought in using those 12-month permits, however.
Informador – The price of Mexican crude exports fell 86 cents and was offered at $38.62 per barrel, compared with last Friday, with the increase in volatility and risk aversion generated by the outcome of the vote in the UK for Brexit.
Reuters – Crude oil exports from Mexican state-owned oil company Pemex rose 11.4 percent in May compared to the prior month, while output was largely unchanged, the company said on Thursday.
Reuters – 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.
Reuters – U.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.
EcoWatch – TransCanada, owner of the proposed Keystone XL pipeline currently being contested in federal court and in front of a North American Free Trade Agreement (NAFTA) legal panel, has won a $2.1 billion joint venture bid with Sempra Energy for a pipeline to shuttle gas obtained from fracking in Texas’ Eagle Ford Shale basin across the Gulf of Mexico and into Mexico.
Business Journal – Mexico’s state-owned power company selected a subsidiary of Houston-based Spectra Energy Corp. and a joint venture led by TransCanada Corp. to build two pipeline projects that will transport natural gas to Mexico.