Reuters – A fire broke out at Mexico’s biggest oil refinery on Tuesday and some staff were evacuated, the latest in a string of incidents to hit the company’s refineries. The Red Cross said nine people were injured, while Pemex said eight people suffered minor injuries and were being treated.
By Javier Blas / Bloomberg
Mexico is set to get a record payout of at least $6 billion from its oil hedges this year, according to data compiled by Bloomberg.
The Latin American country locks in oil sales as a shield against price declines through a series of financial deals with banks including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc. For 2015, Mexico guaranteed sales at almost $30 a barrel higher than average prices over the past year.
The 2015 payment, due next month, is set to surpass the record from 2009, when the Mexican government said it received $5.1 billion after prices plunged with the global financial crisis. The country’s crude has fallen by almost half over the hedging period so far this year. Crude sales historically cover about a third of the government budget.
“The windfall is huge,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd., a London-based consulting company. “This gives Mexico breathing space.”
WSJ – National oil company Petróleos Mexicanos said that it is offering to market crude oil and natural gas from new producers that win contracts in the government’s December auction of onshore oil fields.
Bloomberg – A Mexican senator is preparing legislation that would pave the way for expansion of the nation’s only nuclear power plant as part of its drive toward developing more clean energy.
EFE – Mexico’s Energy Secretariat has presented the guidelines for the country’s first electricity market auction, the latest step in a process that will include a call for bids next week and the awarding of contracts in March 2016.
Reuters – Mexico will start soliciting bids later this month in its first auction of renewable energy certificates, part of an electricity sector overhaul that ends the state-owned power company’s monopoly.
Street Insider – TransCanada has been chosen to build, own and operate the Tuxpan-Tula Pipeline in Mexico. TransCanada expects to invest approximately$500 million in the 36-inch diameter pipeline and anticipates an in-service date in the fourth quarter of 2017.
Sentido Comun – Comision Federal de Electricidad declared void the tender to build the combined cycle Topolobampo III, the second tender of its kind ruled out so far this year.
Bloomberg – Mexico reduced its crude exports to the U.S. in September to the lowest level in more than 25 years as it looks further away for buyers with Gulf Coast refiners flooded with shale and oil sands.
Sentido Comun – Grupo Salinas won the first concession to exploit geothermal resources in Nayarit. With the grant, The firm, through its energy subsidiary, Dragon Group, plans to invest about 2,600 million pesos, about $153 million to generate 25 to 50 megawatts of electricity.
Sentido Comun – Petroleos Mexicanos, together with the U.S. firm BlackRock, announced the start of a $700 million project to supply fuel from the port of Tuxpan, Veracruz, to central Mexico.
Reuters – Mexico’s state oil company Pemex has received a license from the United States to import U.S. light crude in exchange for its own heavier crude oil, but with a lower ceiling than originally planned.
Sentido Comun – Italian renewable electricity company Enel Green Power announced the start of construction of the new wind farm Palo Alto, where it will invest $ 250 million to consolidate its presence in the Mexican market.
Bloomberg – Mexico has some of the strongest sunlight in the Americas and plenty of wide-open space in the Chihuahuan and Sonoran deserts, ideal conditions for solar energy. It also has an import tariff that’s stymied development of photovoltaic power plants.
By Vanessa Dezem and Adam Williams / Bloomberg
Mexico is planning to quadruple its wind-power capacity as part of President Enrique Pena Nieto’s effort to transform the country’s energy industry.
The country expects to have about 10 gigawatts of turbines in operation within three years spread across almost every region, up from 2.5 gigawatts in 2014, part of a government plan to add 20 gigawatts of clean energy by 2030, according to Mexico’s Wind Energy Association.
A total of 22 gigawatts of wind power will be added over the next 25 years, requiring $46 billion in investment. The wind push is due to two converging trends: Mexico’s historic shift from a state-controlled energy monopoly, and its efforts to transform a grid that relies on fossil fuels for three-fourths of the nation’s electricity.
“We’re already a new country,” Alejandro Peraza, general director of the energy regulator CRE, said in an interview in Mexico City. “Mexico is getting cleaner.”
Sentido Comun – Trafigura, a Swiss company that sells and purchases inputs for the energy sector, won the CFE competition to provide 390,000 tons of coal to its power plants in Petacalco, Guerrero.
Clean Technica -China’s largest direct investment in Mexico has come in the wind energy sector. Envision Energy, a manufacturer of low speed wind energy turbines, has acquired a majority stake in a portfolio of wind energy projects with total capacity of 600 MW.
Trend – Russia and Mexico – non-OPEC countries, which have been invited to participate Venezuela-proposed meeting this week – have no intention to cut oil production, International Oil Daily reported.
Reuters – An oil platform explosion that claimed seven lives and caused crude output from four nearby fields to plunge nearly 70 percent will not lead to any fine against state-run oil company Pemex, the head of Mexico’s new oil safety agency said.
KPBS – A historic wind farm in Mexico started sending electricity across the border into San Diego County this summer, but some residents are still fighting it in federal court.