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Ok, well-played. But that still leaves the article that mentions the Brasil field.
https://amp.milenio.com/negocios/sener-identifico-9-campos-viables-almacenamiento-gas
That’s a reason to have hope IMO
"Mexico should be moving forward with storage that could bring great benefits at efficient costs. What’s it waiting for? asks Miriam Grunstein."
What’s Shady About Underground Natural Gas Storage in Mexico?
By Miriam Grunstein | Tue, 10/04/2022 - 09:00
Underground natural gas storage facilities should have been a priority on the agenda of Mexican policymakers for decades and yet not even one has materialized within its subsoil. This is peculiar since, according to Edigaz, “North America concentrates two-thirds of the sites (440 facilities) and accounts for almost 40 percent of global working gas capacity.” When considering that Mexico is part of North America, it is perplexing that its neighbors account for most of the sites worldwide, followed by Europe with the second-largest underground capacity.
Notably, underground natural gas storage (UGS) has become a priority on the agenda of policymakers and companies as a result of the ongoing global gas crisis. In fact, Edigaz has noted that, as of 2018, even before the current conundrum, “the construction of natural gas storage infrastructure has been upgraded to a national policy” in certain jurisdictions. For example, In March 2018, the National Development and Reform Commission of the Republic of China “has required gas suppliers, city gas distributors, and local governments to have storage capacity equal to 10 percent, 5 percent, and three days of their annual sales or consumption, respectively, by the end of 2020.”
The advantages of USG are commonsensical. First, as happens with any goods, storage provides security. When natural gas production surpasses consumption, it can be stored. On the contrary, should demand rise, it can flow to the market. In the US, 20 percent of total natural gas consumption comes from USG. It is also a valuable aid in times of distress, to which we are witnesses, as transmission lines are disrupted due to the already drawn-out turmoil between Russia and the Ukraine. It mitigates price volatility and strengthens reliability of delivery. In sum, USG enhances the resilience of gas delivery and supply.
USG can be done in three subsurface structures: in depleted hydrocarbon reservoirs, in aquifers and in salt formations. Globally, 80 percent of these facilities are located in oil and natural gas fields to take advantage of existing wells, gathering systems and pipeline connections. The wide availability of depleted oil and natural gas reservoirs, and ready to use infrastructure, account for their widespread usage as containers. Nonetheless, above-surface facilities exist in storage tanks. In Mexico, LNG regasification or liquefaction facilities have been deemed to serve as storage when in truth their purpose is not to maintain the hydrocarbon in place but to let it flow into transmission lines, either for import or export, respectively.
Regarding natural gas, Mexico is a vulnerable country. While it cannot be said that there is a shortage of the hydrocarbon per se, it relies almost entirely on the US as a supplier. Also, in the course of 2022, imports of this fuel have soared dramatically, while competing with the aching demand from Europe as winter chills draw closer. From the political angle, the US-Mexico bilateral relationship is facing unprecedented awkwardness, if not animosity. USMCA violations have been pinpointed by the Biden government as the bitter fruit of López Obrador’s energy policy and a period of consultations is taking place as we speak to resolve such contentions. While it would be a somewhat far-fetched assumption that Biden could or would desire to restrict natural gas exports to Mexico, there is one indisputable fact: Mexico lacks minimal natural gas storage, of any kind and siting. This is particularly alarming in a country with a power industry that is an avid consumer of the molecule and has a relentless policy to maintain its addiction. Under López Obrador’s rule, a more diversified energy mix is not bound to occur, nor the energy security he has vowed to attain. Natural gas production is down, demand is skyrocketing, supply is tight and there is zero storage. Mexico is concocting a world-class energy crisis for itself that will impact power generation, industry and the normalcy of the everyday life of its residents.
During the past two decades, there have been a handful of attempts to conceive USG in depleted natural gas reservoirs, to no avail. One initial recollection was the initiative of Tidelands Oil and Gas, which took place at the beginning of the millennium. The overall project went way beyond USG and was envisioned as the creation of a natural gas hub, with transmission and distribution lines, for the industrial complex of Northeastern Mexico. Had it materialized, the supply crunches suffered in this region would have been avoided or at least minimized. Among other reasons, which were related to finding a reliable natural gas supplier and securing demand, the project was stalled by the location of the technically depleted dry gas field that was occupied at that time by PEMEX E & P. Although there was significant information leading to the conclusion that the reservoir was, in fact, depleted, neither the company nor the Energy Ministry gave way for a private company to enter PEMEX’s sacred terrain.
The 2013 Energy Reform closed some of the gaps to allow the concretion of USG in Mexico. For the first time, legislation conferred recognition on USG in depleted reservoirs. Later, in March 2018, the National Hydrocarbons Commission issued an opinion in which it was stated that the Acuyo, Jafa and Saramako fields were officially declared depleted and could be used for USG. However, there remain legal questions that have not been clarified, neither by the law nor by any competent authority: Who is empowered to grant the use of the depleted reservoir? At what cost? By which title? It seems like a trifle but it is not. It is a true legal barrier toward materializing such projects. A geological structure, such as a depleted reservoir, is a national asset. There is, however, the mystery regarding which agency in the Mexican bureaucracy holds the key to its access. This is particularly absurd as value could be obtained from national assets that could be used while creating value and energy security. That is one shady little detail that, until today, has caused a huge encumbrance to move onward toward these projects. Four hundred and forty UGSs in North America. Zero in Mexico. What are we waiting for to get on with what could bring great benefits at efficient costs?
https://mexicobusiness.news/energy/news/whats-shady-about-underground-natural-gas-storage-mexico
I agree with Mac, we we won't know the ultimate outcome until some things happen - namely, the resolution of the USMCA dispute, the third infrastructure package, and/or the second revision of the 2020-2024 SISTRANGAS plan (which should provide an update on natural gas storage and the compression stations).
As for the filings, I still think MW is waiting on releasable news.
It would seem that we are about to start trading again soon. Idk what to think of it tbh. While this alone would allow some to exit, nobody would be getting rich. I am more concerned with getting the deals than anything else.
How do you know?
Here is a link to the "Comprehensive Development Plan for El Salvador, Guatemala, Honduras and south-southeast Mexico, vol. 2"
https://www.cepal.org/en/publications/47251-comprehensive-development-plan-salvador-guatemala-honduras-and-south-southeast
Yet another project dependent on gas coming from our Jaltipan-Salina Cruz pipeline from the San Fernando-Cactus from the Brasil Field. Beautiful how it's all coming together. Like pieces of a puzzle!
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Central America requires an investment of 45 billion dollars to improve the lives of its inhabitants and not raise the level of immigration
To improve the lives of its inhabitants and prevent immigration from rising, the Central American region requires an investment of 45 billion dollars and the implementation of projects such as increasing trade, according to a report published by ECLAC in collaboration with governments of the region.
May 23, 2022
The countries that make up the Central American region require an investment of 45 billion dollars over the next five years in order to improve the living conditions of their inhabitants, according to projections by the Economic Commission for Latin America and the Caribbean (ECLAC) of the United Nations (UN).
In 2021, this region, which was recently toured by the President of Mexico, Andrés Manuel López Obrador, was analyzed in depth by ECLAC for the issuance of the document entitled: "Comprehensive Development Plan for El Salvador, Guatemala, Honduras and the South -Southeast Mexico.”
According to the conclusions of said report, whose preparation included the participation of the national governments involved, for Central America the investment required would have to focus on the following items: 31.2 billion dollars in economic development projects; $10 billion in welfare projects; $3.3 billion in environmental sustainability initiatives; and 500 million dollars to address the migratory cycle.
In addition to El Salvador, Guatemala and Honduras, the "Comprehensive Development Plan" includes nine states of Mexico located in the south-southeast of the national territory: Campeche, Chiapas, Guerrero, Oaxaca, Puebla, Quintana Roo, Tabasco, Veracruz and Yucatan.
In this planning exercise carried out jointly by the countries of the region with ECLAC, it is also contemplating the implementation of 114 projects ready to be launched, and which are framed in five objectives that would be guiding the development of this international community.
The first is about creating a space for sustainable development between El Salvador, Guatemala, Honduras and the south-southeast of Mexico, raising well-being and allowing migration to be an option and not an obligation; while the second to promote initiatives to improve economic performance, attract investment, increase trade and increase the generation of income and decent and decent jobs, preferably in the territories with the greatest migratory propensity.
The third objective focuses on promoting universal access to social rights and welfare for equality; the fourth to promote sustainability and resilience to climate change and comprehensive risk management to mitigate its incidence as a reason for migration; and the fifth to guarantee fundamental rights, as well as care and protection, security and dignity of people throughout the migration cycle (origin, transit, destination and return), promoting safe, orderly and regular migration.
Central America lags behind in infrastructure
One of the main bets made by the "Comprehensive Development Plan" to improve conditions in Central America, this being a region with problems of poverty and violence, is to improve the infrastructure of the countries that comprise it through a program.
“The Enabling Infrastructure Development Program aims to create development conditions in the territories that present high levels of poverty and unemployment as a result of the lack of infrastructure, in order to increase social cohesion and reduce the factors that lead to people leave their place of origin.
"The economic, social and geographical particularities of the most remote areas of the territory mean that these populations have little access to markets and health, education and health services," the document details.
According to the report, the Enabling Infrastructure Development Program requires an investment of 22 thousand 425 million dollars, and would have three subprograms, such as "Transportation Infrastructure," which would serve to promote road, rail and port infrastructure works in accordance with national priorities, in addition to supporting logistics infrastructure development initiatives in specific territories, such as the Isthmus of Tehuantepec in Mexico and Plan Pacífico in El Salvador.
Another subprogram is "Energy Infrastructure," which is intended to generate the conditions for investment in productive development and the energy transition towards renewable sources, and finally "Infrastructure for drinking water and sanitation," which would be focused on improving coverage and quality of essential basic services for people.
In accordance with the route outlined by the "Comprehensive Development Plan," Central America needs to undertake "far-reaching infrastructure works and reduce energy costs," with the goals of integrating the countries of the region, strengthening local economies, food security for the population and the reversal of damage to the environment.
”In the last decade, investment in infrastructure in the countries of northern Central America and the south-southeast of Mexico has focused on transportation and energy. In the first case, the little investment was concentrated in large road corridors, ports and airports, which has contributed to a progressive degradation of the coverage and quality of secondary roads, interior roads and rural bridges, works that are essential for social connectivity and economic development," is shared.
Among the specific infrastructure actions contemplated in the Plan are the following: “Gas pipeline between Mexico and the countries of northern Central America”; “Connection of Mexico with the Electrical Interconnection System for Central American Countries ( SIEPAC ) and second circuit of SIEPAC”; “Modernization and expansion of the Chiapas Port, state of Chiapas” and the “Development of the Tehuantepec isthmus: interoceanic multimodal corridor, Mexico.”
GO MRGE!!!
https://www.reporteindigo.com/latitud/centroamerica-requiere-de-una-inversion-de-45-mil-mdd-para-mejorar-la-vida-de-sus-habitantes-y-no-se-eleve-el-nivel-de-inmigracion/
Combined cycle plants being pushed forward, and they will need gas. Valladolid and Mérida are located on the Yucatán, which is devoid of natural gas until our Lerdo and Tecolutla compression stations are built. The Tuxpan plant is also noteworthy because our Cactus-San Fernando gas pipeline runs right through it.
Mexico's CFE races to finish hydro and natgas projects by 2024
Bnamericas
Published: Wednesday, May 25, 2022
Mexico’s federal power company CFE is racing to finish its ambitious portfolio of hydroelectric and natural gas projects before the next presidential elections in 2024.
Projects due to be opened before then include the modernization of 13 hydroelectric units and the construction of three new generators, as well as the operation of six large-scale combined cycle units the company awarded to Siemens and Mitsubishi over the past few months.
However, while all the plants should be opened by mid-2024, this does not mean they will be fully operational by that date. Rather, the largest projects in the portfolio will at least be able to generate some power at less than full capacity, while some of the smallest projects will operate at their nameplate capacity, CFE told the lower house of congress on Tuesday.
The company also said it was on the verge of putting out to tender a series of hydroelectric projects in addition to the refurbishing of nine generators it awarded in late-2021. These are split into three packages.
The first involves installing a new generator at the Amata dam in Sinaloa state. CFE will invest US$35mn to install 10MW of new hydroelectric capacity, and construction is due to be awarded in July. Interested parties include IGSA, Andritz, Hydroproject, ICA, Sinohydro, Prodemex and VLB Ingeniería.
The second package involves the modernization of four small hydroelectric generators, with a tender set to be launched in June. CFE plans to invest US$4mn in Portezuelos 1 and US$2mn in Portezuelos 2 in Puebla state, and US$7mn and US$10mn respectively at the Encanto and Minas projects in Veracruz. All the projects are slated to be completed between December 2023 and May 2024.
The third package involves construction of two new generators at the future Santa María and existing Picacho dams in Sinaloa state. The former is currently in the tendering process and is likely to be awarded to ICA, the same company building the dam itself, CFE said. The project is expected to be fully delivered by the contractor in May 2024, with a total investment of US$98mn.
Meanwhile, Picachos involves the installation of a 6MW generator for investment of US$10mn. The tender will be launched this June and the generator is expected to be delivered in April 2024.
During the presentation, CFE also gave an update of its six flagship combined cycle projects, which it awarded earlier this year to consortiums led by Mitsubishi and Siemens together with local partners.
The Valladolid and Mérida projects, with combined capacity of 1.5GW and led by Mitsubishi, have advanced 11% and 17.6%, respectively, the company said, while the 205MW González Ortega and 680MW San Luis Río Colorado plants, which were awarded to Siemens, are 13% and 12.5% completed. The remaining two Siemens projects, the 1GW Tuxpan and the 327MW Baja California Sur have advanced 12.5% and 10%, respectively.
The company insisted all six projects will be opened before the end of the current presidential term in September 2024. However, no indication was given as to when these units will be fully operational.
All of the above projects are being financed through CFE's master investment fund, the company said, which utilizes the profits from natural gas trading subsidiary CFEnergía and resources from the fibra E financial instrument, which leverages the future profits from payments generators must make to use CFE's vast transmission network.
Part of the financing to overhaul the company’s hydroelectric generation park will also come from deals with export credit agencies, CFE said.
The company is also advancing the construction of 10 projects that were left pending by previous administrations, which total over 4GW of installed capacity and US$2.88bn in investment.
Among these is the 836MW Salamanca combined cycle plant in Guanajuato state, which the company now expects to come online at some point in 2024.
https://www.bnamericas.com/en/features/mexicos-cfe-races-to-finish-hydro-and-natgas-projects-by-2024
Third infrastructure package is ready for 'when AMLO wants to announce it': Treasury
This new set of investments was to have been announced as early as 2021.
The first two infrastructure packages presented in the last third of 2020 included a total of 68 works (Rogelio Morales/Cuartoscuro)
By Leticia Hernandez May 13, 2022 | 7:35 p.m.
After a 15-month wait, the third package of infrastructure investment projects for private sector investment is ready... waiting for President Andrés Manuel López Obrador to decide to announce it, announced the Secretary of the Treasury, Rogelio Ramírez from the O, to the leaders of the business organizations of the Business Coordinating Council (CCE).
“The secretary highlighted that the third package of infrastructure investment projects is already ready and that the date dictated by the Government of Mexico is only awaited in order to make it known,” the CCE published on social networks.
Francisco Cervantes, president of the CCE, and the presidents of the 14 CCE organizations addressed the issue of the third infrastructure package that was initially to be announced in February 2021.
The first two infrastructure packages presented in the last third of 2020 included a total of 68 works and the investment reached 525 billion pesos financed by the private sector and the generation of 400 thousand new jobs in the country.
The delay in the announcement has been attributed to the time to know the level of progress of the projects of the first two packages, according to Carlos Salazar Lomelín, former president of the CCE, and waiting to have the new projects well anchored to be announced, said Francisco Solares, president of the Mexican Chamber of the Construction Industry (CMIC).
https://www.elfinanciero.com.mx/economia/2022/05/13/tercer-paquete-de-infraestructura-esta-listo-para-cuando-amlo-quiera-anunciarlo-hacienda/
Third infrastructure package must be anchored
Business
LETICIA HERNANDEZ lhernandezm@elfinanciero.com.mx
9 May 2022
In the third infrastructure package for investment from the private sector, it is intended that once announced, the projects are ready for execution and it does not happen as with the two previous packages, where several of the projects were still in their sketches, said Francisco Solares, president of the Mexican Chamber of the Construction Industry (CMIC).
“Before, projects were announced that some were just ideas, they lacked the executive project and now when they announce the third package, what they want is to go back and start those works,” reported the leader of the construction industry at the level national, about what was discussed with the investment director of the Ministry of Finance.
The third installment of infrastructure projects, which has been postponed for more than 15 months due to the need to account for the progress of the works included in the two previous packages, will be announced shortly, said Francisco Cervantes, president of the Business Coordinating Council (CEC). “This third infrastructure package is ramping up; We hope that in a few days it will be announced by the president (López Obrador)," Cervantes told the media in the framework of the 2022 Industrial Meeting.
Between the private sector and the Ministry of Finance, together with the Ministry of Communications and Transportation (SCT), they defined a process under a methodology for the assignment of projects to be included in the third package in which potential projects are identified; they are analyzed, the permissions part is seen and finally they start executing.
However, there is no information about the level of progress of the works contained in the two packages announced in the last third of 2020, at least not for the CMIC. “We don't know, there is no information because they are not public works that in theory should have transparency. There is no information, but according to the data we have with the Ministry of Finance, I told the head of the investment unit, that they had 30 percent progress in what we have been able to see, but I think it is less," Solares said in an interview.
https://www.pressreader.com/mexico/el-financiero/20220509/281749862942176
Third infrastructure package will cover more projects: CCE
Businessmen's mood has improved, they say
Photo: Twitter Francisco Cervantes
Lilia Gonzalez
May 05, 2022, 17:43
Businessmen's mood has improved and interest in doing business in Mexico is accelerating, right in the midst of Russia's geopolitical tension in Ukraine and the United States' trade war with China, said Francisco Cervantes, president of the Business Coordinating Council (CCE).
He even announced that the third infrastructure package, which had been ready for a few months, is being strengthened with new investment projects, which include the energy sector.
Participating in the closing of the Concamin Business Meeting 2022, Cervantes reported that the third public-private investment infrastructure package will be announced shortly by President Andrés Manuel López Obrador, in order to generate economic growth in Mexico and counteract the inflationary effects.
We are already (working), President AMLO said that they will announce it at any time, we are waiting for it to be announced,” he commented.
The president of the CCE mentioned that in the framework of the presentation of the anti-inflationary plan , last Tuesday, the Chief Executive reported to the businessmen that in the next few days it will be announced, "also they are increasing it, not only was there a package, more works are being put into it.”
He added: “It was already there and it is increasing, there are many of these works that are said to increase. It was one of the reasons for the delay."
The representative of the Mexican business community boasted of the "excellent" relationship between the private sector and President López Obrador. And he stressed that Mexico is in an exceptional situation to attract investment and expand infrastructure works that lead to economic and social development.
"Just a month ago, investments have accelerated a lot, we have received many visits from abroad, to mention a few, the Deputy Minister of Economy of Canada, the issue of Constellation Brands in Veracruz, which laid the first stone, but It is also accompanied by many other companies that are very keen to invest,” he said.
Cervantes Díaz mentioned that he recently held meetings with the Council of the Americas and another group of European businessmen interested in the industrial parks located in the State of Mexico and the intersection with the Querétaro highway.
“There is encouragement in Mexico for investments, especially at a time of tension due to the war and the other important element that we have is the logistics cost and this helps us a lot with the T-MEC chapter to replace imports and raise the national content in Mexico,” he established.
https://www.eleconomista.com.mx/empresas/Tercer-paquete-de-infraestructura-esta-listo-y-contemplara-nuevos-proyectos-CCE-20220505-0093.html
I believe Francisco Cervantes' (president of the Business Coordinating Council) intended meaning was lost in translation / misunderstood. It appears to me that he was referring to AMLO's presentation of his plan against inflation that happened today.
https://www.eluniversal.com.mx/nacion/cce-felicita-amlo-por-plan-contra-la-inflacion (CCE congratulates AMLO for plan against inflation; assures that businessmen want to collaborate)
Some articles say that the third infrastructure package would be "announced," but others say the issue would be "discussed" (like this one - https://www.reporteindigo.com/reporte/hay-oportunidad-para-la-inversion-en-mexico-amlo-cena-con-el-consejo-de-las-americas/) and others say that this week "the private initiative will begin talks with the Government of López Obrador to agree on the third infrastructure package." (https://www.elsoldemexico.com.mx/mexico/politica/amlo-ceno-con-empresarios-de-eu-para-proponer-oportunidades-de-inversion-8204052.html)
He's not wrong technically. The package WAS mentioned at AMLO's morning press conference. They are "working on it" as stated in Macod's post (https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168754851). Sounds to me like they're working on finalizing the agreements.
Also, from this article about the plan against inflation - "From the presentation of the infrastructure plan, he said that the third package is being worked on."
https://www.capitalmexico.com.mx/economia/canasta-basica-bajaria-hasta-un-20-ip/
AMLO addresses foreign investment opportunities at dinner with US businessmen
President López Obrador reported that at the dinner offered tonight for US businessmen, they mainly talked about the opportunities for foreign investment in Mexico.
By The Universal
April 27, 2022
AMLO discusses foreign investment opportunities at dinner with US businessmen | Twitter/ lopezobrador_
MEXICO CITY.- President Andrés Manuel López Obrador reported that at the dinner offered tonight to American businessmen of the Council of the Americas, they mainly talked about the opportunities for foreign investment in Mexico and the economic integration of America with respect to the sovereignties.
On his Twitter account, the head of the federal Executive released a couple of photographs of the dinner that took place in the Treasury room and where he was accompanied at the main table by the president of the Sudan Segal body; the ambassador of the American Union, Ken Salazar; Foreign Minister Marcelo Ebrard; Adán Augusto López Hernández, Minister of the Interior (Segob); Tatiana Clouthier, head of Economy (SE) and by Rogelio Ramírez de la O, head of Finance (SHCP).
"We dined at the National Palace with American businessmen from the Council of the Americas, chaired by Susan Segal. The main topics were: the opportunities for foreign investment in Mexico and the economic integration of America with respect to sovereignty, ” he wrote on the social network.
AMLO addresses foreign investment opportunities at dinner with US businessmen
For his part, in an interview, the president of the CCE, Francisco Cervantes, said that it was a “succulent dinner” and there were many topics that were discussed, such as investment.
"We have to invest more, American companies are committed and he (President) is willing to provide facilities for foreign investment," he mentioned.
Cervantes pointed out that there is a good climate to invest in the country and this helps fight inflation.
The president of the Business Coordinating Council said that next Wednesday the third investment package in infrastructure by the private initiative and the federal government will be announced.
At the end of the dinner that lasted more than three hours, the United States ambassador to Mexico, Ken Salazar, said that a very good job was done.
https://www.elimparcial.com/mexico/AMLO-aborda-oportunidades-de-inversion-extranjera-en-cena-con-empresarios-de-EU-20220427-0156.html
AMLO guarantees full support for investments in the Interoceanic Corridor of the Isthmus
In San Juan de Ulúa, the president leads a meeting with the ambassador and businessmen from the United States, Canada and the governors of Veracruz, Tabasco, Chiapas and Oaxaca
Veracruz, Veracruz, April 22, 2022.- “Guaranteeing them that we are going to support them in everything, investment is very important to us; Mexico has many opportunities and you have all the possibilities to do business," said President Andrés Manuel López Obrador this morning as he led the meeting with authorities and investors from the United States and Canada, to whom he presented the progress made in the construction of the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT).
The president considered that in the medium term there could be an unequal and risky imbalance if China's dominant trend in the commercial sphere continues, so it is in no one's interest to have hegemonies:
“If that imbalance is maintained and we do nothing, how would dominance be sought? Well, through war and we don't want that. Economic and trade balance means political stability.”
After affirming that the renewal of the T-MEC was a good step because it opens many opportunities for North America, he underlined the importance of integration with respect to our sovereignties and highlighted that Mexico has unbeatable conditions for investment.
He pointed out that various factors allow to bet on the self-sufficiency of the region; In the case of our country, he recalled that foreign investment is growing like never before, in addition to the comparative advantage of freight costs, technological development, our natural resources, as well as the existence of young labor and market.
He added that Mexico is working on the balanced growth of its regions to generate horizontal growth, which is why today, more than ever, it invests in the Mexican southeast, considering 25 billion dollars for the construction of the Dos Bocas refinery and the Mayan Train.
After thanking the confidence of the American businessmen of Constellation Brands, the president indicated that the Interoceanic Corridor of the Isthmus of Tehuantepec will allow opening markets beyond Texas and California to cover the east coast of the United States from the Mexican southeast.
He explained that the 10 industrial corridors of the Isthmus of Tehuantepec will offer advantages to the oil and gas industry, especially at this stage where there is a need for fuel in other continents, which will be covered with liquefaction plants in Salina Cruz to reach Asia, or in Coatzacoalcos, to reach Europe.
He reiterated that the Mexican government will support investors in everything because the fundamental purpose is to combat poverty and corruption that led us to insecurity and violence.
“The most important thing of all is the well-being of the people. Peace is the fruit of justice; That is the most important."
He reported that thanks to the actions of the federal government, great savings were generated in the new “Felipe Ángeles” International Airport (AIFA), in the 260 barracks of the National Guard (GN) and in the current construction of Banco del Bienestar branches.
At the same time, it reported that the majority of the population in the poorest states receives at least one welfare program, such as Oaxaca, Chiapas and Guerrero (100 percent of households), Veracruz (95 percent) and Tabasco (between 90 and 95 percent).
“That is why in these four states there are no serious problems of violence. We have lowered; nothing else in what has to do with the crime of kidnapping, in the time that we are, 75 percent the incidence of this crime in the country.”
Mexico opens the possibility of dialogue to companies in the electricity sector
Regarding the concerns generated by the issue of the electricity reform, President López Obrador reaffirmed that in Mexico there is a true rule of law, for which the Judiciary resolved with full independence the constitutionality of the Law of the Electricity Industry.
He reiterated that before proceeding legally, the Mexican government opens the possibility of dialogue to companies in the electricity sector and at the time they will be summoned to explain the terms of the law, and recommended that his lawyers begin to analyze it, since the self-supply for being a legal fraud.
“To the one that generates the energy and sells it pretending that it is a company, buying a share with one dollar, because that is no longer legally possible.”
In ratifying the agreement with his counterpart from the United States, Joseph Biden, to act in accordance with the law and that there is justice, the president of Mexico concluded that our country offers all the opportunities to do business with reasonable profits.
Finally, he thanked Ambassador Ken Salazar for acting as a liaison with the businessmen and reiterated that relations with the government of our neighboring country are very good.
We share the goal of integrating our economies: SRE
The Secretary of Foreign Relations, Marcelo Ebrard Casaubon, stated that both governments have the common objective of accelerating investment and the integration of their economies in the face of a different geopolitical reality, but it is also a good time before the next Summit of the Americas to be held in June.
“Today we have a categorical imperative to accelerate that integration, protect supply chains and be more competitive with other regions of the world.
"We place ourselves at your service so that this strategic vision that the two presidents have, and that they also share in Canada, can be carried out."
Semar guarantees safety in railway construction
The Secretary of the Navy, José Rafael Ojeda Durán, reported that as part of the security actions in the sections under construction of the CIIT railways, 1,200 elements are deployed in the first section that runs from Coatzacoalcos to Salina Cruz (307 km ), while another three start work this year, for which six companies will compete: Coatzacoalcos-Palenque (328 km), Ixtepec-Ciudad Hidalgo (459 km) and Dos Bocas-Ramón Ayala (95 km).
He recalled that Semar is in charge of the administration of ports such as Coatzacoalcos, Dos Bocas, Salina Cruz and Puerto Chiapas, each one has its own Naval Port Protection Unit that guarantees security.
He added that the Ferrocarriles Interoceanicos del Isthmus de Tehuantepec company will be under the control of Semar with an admiral in charge.
There are conditions to start the operation of the train and the ports this year: CIIT
The general director of the CIIT, Rafael Marín Mollinedo, explained that the project is made up of the logistics platform and the industrial development platform, the latter includes 10 industrial parks throughout the CIIT, which joins the ports of Coatzacoalcos (Veracruz) and Salina Cruz (Oaxaca).
“We believe that we can start this year with the operation of the train and the ports. There are conditions to start now with the transport between one ocean and the other of the containers that can arrive at both ports.”
He recalled that the CIIT will trigger the development of the region and will establish a safe and efficient connection, on the one hand, between the eastern United States and Asia, and on the other, between the east and west of North America; but, in addition, it will promote the connectivity of North America with South America, Asia and Europe.
“Under the T-MEC, it will guarantee the commercial integration of the region.”
He explained that it is a unique logistics platform, made up of ports, trains, airports, highways and industrial parks.
He informed investors that the federal government will grant fiscal incentives in the Isthmus of Tehuantepec to the companies that settle, which will have cheap energy (gas, electricity), as well as sufficient water for industrial parks and an entire infrastructure network. in communications (railways, highways and airports), as well as the authorization of ports.
He added that the transisthmian gas pipeline is currently being built, which will include the liquefaction plant; optical fiber that will be in service throughout the entire CIIT, and an energy corridor is planned in the Veracruz area, which has gas, oil and petrochemical plants.
“A curtain of development is going to be created and it could also be the detonator of all the development of the south southeast, together with the projects of the Dos Bocas refinery and the Mayan Train. These three important projects are going to be the triggers for the development of this area of the country.”
In addition to members of the legal and expanded cabinet, President López Obrador was accompanied by the governors of Veracruz, Cuitláhuac García Jiménez; Chiapas, Rutilio Escandon Cadenas; Oaxaca, Alejandro Murat Hinojosa; and Tabasco, Carlos Manuel Merino Campos.
On behalf of the United States government, Ambassador Ken Salazar, and the Counselor Minister for Economic Affairs, Jennifer Davis Paguada. On behalf of the Canadian government, the Minister Counselor for Commercial Affairs of Canada in Mexico, Mark Richardson.
On behalf of the private sector, the president of the Business Coordinating Council (CCE), Francisco Cervantes Díaz; the president of the Mexican Business Council (CMN), Antonio del Valle Perochena; and the president of the American Chamber of Commerce Mexico, Vladimiro de la Mora.
Likewise, the presidents and representatives of Accenture, AES, Cargill, Constellation Brands, Freightliner & Detroit Diesel, EDP Renewables, General Motors, Kansas City Southern, Pacific Limited, Navistar, Sempra Infrastructure, TC Energy, Aecom, Index, 3M, AT&T, Invenergy, TC Energy, Cummins, Freightliner & Detroit Diesel, Fedex, Progress Rail, Rassini, UPS and Visteon.
https://www.diariodetabasco.mx/nacion/2022/04/23/garantiza-amlo-apoyo-total-a-inversiones-en-corredor-interoceanico-del-istmo-de-tehuantepec/
I don't believe storage was exactly "off the table." More like not at the top of the "urgent to-do-list." (My comments will be in bold, and article excerpts will be in normal text.)
https://www.argusmedia.com/en/news/2123750-mirage-bets-on-mexicos-gas-storage-needs-over-wants
"Mexico's energy ministry crossed developing commercial natural gas storage off its urgent to-do list in its latest policy outline, but one Texas developer believes his company's project proposals still have a chance."
I believe this changed with Winter Storm Uri in February 2021. I think Mexico will be going with our storage project.
https://www.argusmedia.com/en/news/2187375-mexicos-cfe-reconsiders-gas-storage-after-outage
"Mexico's state power utility CFE plans to develop a fuels storage policy in order to mitigate future gas supply shortages such as those that triggered power outages across northern Mexico yesterday.
CFEnergia, CFE's fuels division, will develop "a strategic commercial and operative storage policy that will minimize negative impacts of abrupt price movements and drastic variations in the volumes ordered by Mexico to generate electricity," director Miguel Reyes said in a CFE board meeting yesterday.
Shortages in natural gas supply following record cold weather in Texas sparked power outages across northern Mexico yesterday affecting 4.7mn customers. Power supply has been re-established to around 80pc of customers, President Andres Manuel Lopez Obrador said today, but full service is not expected to resume until 18 February."
{snip}
Prior to the storm, "Lopez Obrador's government" had "abandoned plans to build 45 Bcf of commercial storage by 2026 with outside investment in favor of a more limited proposal that would include 3 Bcf of storage in salt caverns in Shalapa, Veracruz state and 3 Bcf at the Altamira LNG terminal, overseen by state pipeline operator Cenagas."
So I would think that AMLO would want 45 Bcf of storage at the bare minimum after Uri. Add to this that "everything was ready to start the operation of the Burgos system" before AMLO came in - https://investorshub.advfn.com/boards/read_msg.aspx?message_id=161931094
Other OECD countries average 80 days' worth of storage. https://nrgibroker.com/en/mexicos-natural-gas-dilemma/
Mexican natural gas imports are expected to grow to 9 Bcf per day by 2030.
https://www.naturalgasintel.com/tc-energy-eyeing-5-6b-in-mexico-natural-gas-investment-by-2025-citing-strong-fundamentals/
There was never a call for interest or tender put out with regards to natural gas storage, which gives me reason to believe we are involved.
Things have clearly been progressing with regards to some sort of storage:
________________________________________________________________
Article from Apr 29, 2021
https://www.naturalgasintel.com/mexico-natural-gas-market-spotlight-march-prices-come-back-to-earth-after-february-shock/
“There was also a higher-than-expected build in the South Central region, which saw inventories rise by 6 Bcf. This is the region most relevant to Mexico, which has no natural gas storage facilities. However, a contact in the market told NGI’s Mexico GPI that Mexico’s gas grid operator Cenagas is in discussions about developing domestic storage, mainly as a response to the import crisis experienced in February.”
Article from Aug 12, 2021
https://www.naturalgasintel.com/mexico-natural-gas-market-spotlight-strong-summer-prices-causing-domestic-headaches/
“A source told NGI’s Mexico GPI that talks over developing storage facilities in Mexico are advancing quickly. The storage would be developed by Sistrangas operator Cenagas in conjunction with state utility Comisión Federal de Electricidad (CFE), the source said. It would be welcome news; the idea was first considered in 2018.”
Article from Aug 24, 2021
https://www.naturalgasintel.com/mexico-natural-gas-market-calls-for-storage-capacity-sees-demand-soaring-over-next-decade/
“‘I think the best timing for storage is now,’ Gadex energy consultant Eduardo Prud’homme told NGI’s Mexico GPI. He noted the supply impacts from Uri are still fresh in people’s minds. He said multiple developers are working to develop storage projects in Mexico.”
Article from Oct 28, 2021
https://www.naturalgasintel.com/natural-gas-futures-remain-volatile-clients-nervous-as-cold-weather-nears-mexico-spotlight/
"A source told NGI’s Mexico GPI that in terms of strategic storage for this winter and in the years ahead, officials at the Sistrangas pipeline network operator Cenagas are 'in talks with different parties.' Something could be announced in 'the next few weeks.'"
Article from Nov 9, 2021
https://www.naturalgasintel.com/mexico-natural-gas-buyers-said-nervous-about-winter-supply-price-shocks/
"Natural gas buyers in Mexico are nervous about supply and price shocks similar to Winter Storm Uri happening again this winter, experts said Monday at the U.S.-Mexico LDC Forum in San Antonio, TX."
{snip}
"Mexican gas buyers 'always bring it up when I speak to them,' Lenton said. 'They were slammed by it completely unprepared, and there are still consequences from that event.'"
{snip}
“'The one thing I hear when I talk to Mexican buyers of natural gas is that they’re very, very nervous going into this winter,' he said. 'A lot of that has to do with prices, but there’s also an element that has to do with the winter storm last year.'
Mexico’s vulnerability to disruptions in gas supply 'clearly is a top-of-mind issue for many customers because many of them were exposed to shutdowns due to lack of physical availability,' said Igasamex’s Carlos Arriola, director general, during a panel at the forum. The firm develops and operates natural gas systems in Mexico."
{snip}
"Adding to the challenge, Lenton said, is a lack of natural gas storage capacity in Mexico, as well as the lack of a robust secondary market to optimize unused pipeline transport capacity.
He noted that in the last public consultation of the gas market conducted by Sistrangas pipeline grid operator Centro Nacional de Control del Gas Natural (Cenagas), participants stressed the urgency of adding storage capacity.
Where Are Mexico’s Gas Supply Challenges?
Although Mexico’s gas market challenges vary by region, a common thread is concern about 'gas availability, primarily related to the situation that we had back in February,' said Arriola. Abbott’s executive order on gas exports 'brought into the front how politically sensitive these types of issues can be, and how vulnerable to a great extent our current gas supply chain is due to lack of local production and to lack of storage.'"
Article from Nov 11, 2021
https://www.naturalgasintel.com/veracruz-salt-dome-natural-gas-storage-project-said-probable-mexico-spotlight/
"Following a tricky 2021 that has included a major disruption to its natural gas supply, the Mexican government is advancing plans for strategic storage.
Speaking Tuesday at the U.S.-Mexico LDC Forum in San Antonio, TX, Gadex consultant Eduardo Prud’homme said 'good discussions' were underway with a developer to build a salt dome storage facility in Veracruz. 'It’s very probable we will hear about it soon,' he said."
Article from Dec 9, 2021
https://www.naturalgasintel.com/relief-expected-as-winter-natural-gas-price-outlook-brightens-mexico-spotlight/
"In related news, Mexico Energy Minister Rocío Nahle this week met with officials from Cenagas, which manages the Sistrangas system. A source told NGI’s Mexico GPI that the meeting was around additional natural gas projects, with the potential Veracruz storage facility discussed."
________________________________________________________________
Now, starting from Nov 11, 2021, articles discussing natural gas storage have mentioned the Veracruz salt dome project. I believe this was due to an assumption by Eduardo Prud'homme. I think he heard that Mexico would be proceeding with the natural gas storage plan, and he assumed that meant they would continue on with the 5-year plan as previously outlined. https://www.naturalgasintel.com/mexicos-5-year-sistrangas-expansion-plan-focused-on-connectivity-south-southeast-natural-gas-access/
But this 6 Bcf project was mentioned pre-Uri. We know that things have changed a lot since then. I just don't think AMLO/Mexico would scrap a plan for 45 Bcf of storage in favor of one for 6 Bcf of storage, go through everything Mexico has gone through as a result of Uri, state that storage has now become a priority, only to build the 6 Bcf facility that they had originally planned to build anyway.
One final point regarding storage, as per the five-year plan by Sener, the first version released in Nov. 2020 can be found here.
https://www.gob.mx/sener/acciones-y-programas/plan-quinquenal-sistrangas-2020-2024-256588
The revision from Dec. 2021 can be found here.
https://www.gob.mx/sener/documentos/primera-revision-del-plan-quinquenal-de-expansion-del-sistrangas-2020-2024
I looked in the revision from Dec. 2021 and the exact wording of point 2.2.8 is "Currently, SENER and CENAGAS are working in a coordinated manner to define the strategy for storage of natural gas, which must be presented during the second review of the Five-Year Plan of Expansion of SISTRANGAS 2020-2024."
Note that 2.2.8 is supposed to be an update on "operational storage in salt caverns." Also, further down in the document on point 6.2 (PROJECTS OF THE FIRST ANNUAL REVIEW OF THE FIVE-YEAR PLAN 2020-2024 APPROVED BY SENER), I find it interesting that "operative storage" appears rather than the earlier phrasing of "operational storage in salt caverns." Also, mechanism of development and estimated investment are both "in definition," rather than having information related to the Veracruz salt cavern project.
GO MRGE!
Another article that I don't believe has been posted here yet. Sounds like the third infrastructure package will definitely include energy projects.
Promotion of clean energy, vital in investment and competition: HSBC
KAREN GUZMÁN
Ciudad de México / 16.03.2022 09:33:10
The electrical reform carried out by Mexico must promote the production of energy from clean sources and at a good cost, since this variable will define the investments that the country needs, said Jorge Arce, president and CEO of HSBC Mexico . In an interview prior to the 85th Banking Convention, which will take place on March 24 and 25, 2022, the director of the financial group said he was interested in the third infrastructure package that the federal government will present and that it precisely contemplates proposals for the energy sector. All the projects included involve private participation of more than 50 percent. He assured that government investment in large projects is not enough for the country's growth, highlighting that there is still potential in different areas, mainly in energy and telecommunications. “There is a lag in investment, mainly in infrastructure, I know there is a government program in which they want to reactivate this sector and we are very optimistic that this will work… We have to produce inputs that have a low carbon load, to do that, the only way is to have clean energy, otherwise we cannot compete”, he explained. But he added that it is necessary to clarify the line of work, the operation, the legal and regulatory system so that the electricity reform presented by the president Andrés Manuel López Obrador promotes investment, "the use of clean energy that makes the cost of energy in Mexico more efficient." Growing business Arce highlighted that Mexico came out of the crisis in 2021 and this is reflected in a greater demand for credit. “El país tiene una situación muy particular, con remesas internacionales que llegan directo al consumo y empresas que están acostumbradas a competir con todas en el mundo en una economía totalmente abierta. ¿Qué nos falta? Necesitamos un poquito de tiempo y suerte, creo que todo el mundo ve un gran potencial”, explicó el director general de HSBC México.
The banker assured that in addition, with Citi 's exit from the consumer business, HSBC will benefit as it is a segment in which it competes directly with the US bank and acknowledged that this transaction will not affect the national financial system as a whole because it has good capitalization levels. KEYS Value chains For HSBC, Mexico is a platform to serve the market throughout the American continent by attracting production and value chains. Confidence The bank will invest this 2022 in the country more than in the last 10 years, mainly in talent, renovating branches and digitizing processes in its mobile application.
https://www.milenio.com/negocios/hsbc-promocion-energia-limpia-vital-inversion-competencia
First off, the the Mexican congress failed to pass the proposed reform.
https://www.bbc.com/news/world-latin-america-61139128
Secondly, I don't believe the reform would have affected MRGE's projects anyway.
https://realestatemarket.com.mx/noticias/infraestructura-y-construccion/34781-por-reforma-electrica-en-riesgo-44-mil-mdd-de-inversion
Third infrastructure package will not be affected
Salazar Lomelí commented that the third package for investment in infrastructure is ready and ruled out that the Electricity Reform is a brake on it; he assured that they are waiting to present it and report on the status of the projects of the first two packages.
“The third investment package is ready, it was discussed with the Ministry of Finance, with the new officials who are in charge. The Treasury Secretary made all the comments and I don't think this will be stopped or that it will stop, they are investment initiatives that benefit Mexico."
Natural Gas a Growth Engine for Mexico
By José García Sanleandro | Thu, 04/07/2022 - 17:00
The energy sector is vital for a country’s economy. It is synonymous with growth and evolution among all the industries that depend on it. For this reason, having fuel at costs that are accessible and competitive – virtues that are inherent in natural gas – and that at the same time improves the quality of life of the population and reduces CO2 emissions is, simply stated, essential.
However, not all areas of the country have access to this type of energy, which keeps them socially and economically underdeveloped compared to other regions.
Data from Mexico’s National Institute of Statistics and Geography (INEGI) shows that states that have access to natural gas increase their Gross Domestic Product (GDP) by up to 50 percent, which translates to a better quality of life for residents.
In addition, Mexico is in a very favorable geographical location in comparison to other countries, since it is located in an area with significant natural gas reserves and some of the cheapest prices for this hydrocarbon.
If we want to take advantage of these benefits in Mexico, we are obligated to develop a strategy that will allow us to ensure that this type of energy reaches all corners of the country, since it will undoubtedly directly benefit homes, businesses, industry, mobility and the electricity sector.
To reach the most distant locations, it is necessary to have proper infrastructure for transportation and distribution. Natural gas may be able to be the “head of the spear” for the establishment of industries that would generate more and better jobs. It is worth noting that the natural gas industry has state-of-the-art technology to develop projects quickly, bringing economic benefits and improving the air quality in principal cities through the use of natural gas for vehicles and the activities of transportation and distribution of natural gas by virtual pipelines to supply industries.
It is also necessary to strengthen the storage infrastructure of natural gas, which in our country has great opportunities. The Netherlands and Germany have between 151 and 100 days of reserves. Following these examples would be a huge investment in Mexico’s energy security.
Storage infrastructure would allow Mexico to face a weather event such as the one occurred in Texas in February 2021, which interrupted economic activity and the operation of the electricity grid in some Mexican states, mainly in the north of Mexico. For this, the participation of all the actors involved is essential, working hand-in-hand with authorities at all three levels of government.
Today, energy demand has increased in several sectors as the country’s economy reactivates following the COVID-19 pandemic; therefore, our task is to maximize the use of current infrastructure and develop new projects that allow us to ensure a safe and reliable supply of natural gas for the present and future demand in the country for all users.
Natural gas has proven to be the best option for business, vehicles, residential consumers, and of course, for the generation of electricity; therefore, working together as an industry will help us face Mexico’s new challenges, while always prioritizing equal access opportunities for all.
https://mexicobusiness.news/oilandgas/news/natural-gas-growth-engine-mexico?tag=oilandgas
I wonder who is "other companies"... Who would be responsible for the Salina Cruz and Coatzacoalcos LNG facilities? This is consistent with the articles that leaked Mirage and Northern Hemisphere -
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168183680 Very interesting imo. Even if it isn't us, good that AMLO is pushing forward on these projects that will require gas. We will know soon one way or another.
Mexico plans three gas liquefaction facilities, eyes tender process
MEXICO CITY, April 1 (Reuters) - Mexico wants to build new gas liquefaction facilities to export excess gas and will put the plants out to tender if he does not get commitments for their construction within a month, President Andres Manuel Lopez Obrador said on Friday.
Lopez Obrador urged U.S firm Sempra, which has a liquefied natural gas (LNG) facility by the northwestern port of Ensenada, and other companies to sign up the plan to build the facilities in the Pacific ports of Topolobampo and Salina Cruz, as well as another in Coatzacoalcos in the Gulf state of Veracruz.
Sempra had already said in November it was developing an LNG export plant in Topolobampo in the northwestern state of Sinaloa, but Lopez Obrador on Friday said it was urgent to get moving with the plants worth $3 billion to $4 billion each.
"If Sempra and other companies don't respond in a month, we're going to put them out for bid, because there are going to be interested companies," he told a regular news conference.
The president said it was vital that Mexico become more self-sufficient on energy, and pointed to the importance of being able to export more gas to Asia, the Americas and Europe, amid supply disruptions caused by the war in Ukraine.
Interested companies would have a month to reach agreements on plans for the facilities with the Comision Federal de Electricidad (CFE), Mexico's state-owned power utility, he said.
The president said he spoke about the LNG export plan on Thursday with U.S. officials, including climate envoy John Kerry, when discussing U.S. concerns over Mexico's proposals to give more market power to its state-run energy companies.
In a document detailing points that Mexico said it shared with U.S. officials, the government also proposed joint accords to modernize wind turbines, dams and the installation of floating solar panels in the reservoirs of the dams.
https://www.reuters.com/business/energy/mexico-plans-three-gas-liquefaction-facilities-eyes-tender-process-2022-04-01/
I'm with Juan! Economic reactivation is urgently needed. We will know soon whether MRGE is in the mix.
In April the third infrastructure package
by Juan Manuel DeAnda
March 8, 2022
After its presentation was postponed on several occasions, the most recent at the beginning of the year, everything seems to indicate that now, yes, the third package of infrastructure projects -in which the private initiative can invest together with the Government- is ready and will be launched after on April 10, the date on which the electoral ban ends due to the consultation process on the revocation of the mandate of President Andrés Manuel López Obrador.
Although the exact details about the content are not known, it has transpired that this package could add a mixed investment of more than 70 billion pesos, destined for the construction of highways, border crossings, airports and railway works.
One of the projects that has been said will be launched will be the construction of a light rail in Jalisco that, with a length of 20 kilometers, will run from Guadalajara to the municipality of Tlajomulco de Zúñiga and whose investment is estimated at 10 billion pesos.
According to data from the Business Coordinating Council (CCE) after reviewing the two previous packages, it was found that more than 50% of the 68 projects valued at more than 520 million pesos are already underway.
The announcement of the third package was contemplated for the end of January or the beginning of February; however, it had to be postponed due to the ban that the Federal Electoral Institute (INE) imposed, before the start of the process for the revocation of the presidential mandate.
The truth is that the investment contemplated by this set of projects will fall like a glove to the federal government, today more than ever the arrival of capital for economic reactivation is urgent, after almost two years of paralysis as a result of the Covid-19 pandemic, a phenomenon that could be delayed as a result of the invasion of Ukraine by the Russian army.
https://www.24-horas.mx/2022/03/08/en-abril-el-tercer-paquete-de-infraestructura/
Our time is near.
IP investment package will be announced after the electoral ban: CCE
Acapulco, Gro. The announcement of the third infrastructure investment package financed by private initiative will come at least three months after what was promised by the federal government, exhibited Francisco Cervantes Díaz, new president of the Business Coordinating Council (CCE).
Prior to the inauguration of the 85th Banking Convention, the leader of the business leadership was questioned about when the third announcement that President Andrés Manuel López Obrador promised will be made no later than January. "Soon, once the ban is over," Cervantes Díaz summed up.
With a drop in growth expectations for this year, as a result of a new wave of infections due to the coronavirus pandemic and the inflationary advance fueled by the conflict between Russia and Ukraine, the federal government has delayed the announcement of a third infrastructure package to promote economic activity in the short term.
The referendum to revoke the mandate that will be held on April 10 put certain locks on the federal government's announcements, while growth expectations for this year calculated by international organizations and financial institutions are increasingly far from 4.1 percent. .
Avoiding giving an opinion on the monetary policy announcement made by López Obrador, before it was officially made by the Bank of Mexico, Cervantes opted for the inflationary issue, as an effect of the war between Ukraine and Russia, and the risks involved for current economic conditions.
He added that they are in talks with the deputies to launch a financing program for micro and small businesses, but taking care of the effect on prices. "As in Mexico it can affect us a lot, we are taking care of all the edges so that we are the most careful because we can have a negative impact on the inflationary part," he said.
https://www.jornada.com.mx/notas/2022/03/24/economia/paquete-de-inversion-de-ip-sera-anunciado-tras-veda-electoral-cce/
Another article to give more information as to timing and the "electoral ban" issue. Maybe June 5 is the date to consider when thinking of how early the third infrastructure package could be revealed, not April 10.
Revocation of the Mandate and elections 2022: when does the electoral ban start and what does it prohibit?
In accordance with article 35 of the Constitution, the electoral body will be the only authority that will promote the exercise of Revocation of Mandate and the governmental elections
February 4, 2022
In view of the Mandate Revocation consultation and the ordinary elections in six states of the Republic, the National Electoral Institute (INE) announced the dates on which the electoral ban will begin, a period of time in which political parties will be prohibited from issuing governmental propaganda.
For the consultation on the Revocation of the Mandate of President Andrés Manuel López Obrador (AMLO), the organization detailed that from February 4 to April 10 the dissemination of propaganda by governments will be suspended, however, unlike the bans in local or presidential election processes, the silence prior to the exercise will have a duration of 65 calendar days.
During this period, no natural or legal person, either on their own behalf or on behalf of third parties, may contract advertising on radio and television aimed at influencing the opinion of citizens regarding the Revocation.
And it is that according to the Federal Law for the Revocation of Mandate (LFRM) in its article 33, "during the time that the process comprises, from the issuance of the Call and until the conclusion of the voting day, the diffusion must be suspended in the media of all government propaganda of any order of government.
While on June 5 Aguascalientes, Durango, Hidalgo, Oaxaca, Quintana Roo and Tamaulipas will hold ordinary elections , for which the electoral body reported that the electoral ban period will be from June 2 to 4, 2022.
Meanwhile, from April 3 to June 5, all government propaganda must be suspended except those related to education, health and civil protection in case of emergency.
The above, due to the fact that article 41 , section C, of ??the Political Constitution of the United Mexican States establishes that during the time that the federal and local electoral campaigns comprise and until the conclusion of the respective election day, the diffusion in the media all propaganda , both from the federal powers, as well as from the states, as well as from the municipalities, from the territorial demarcations of Mexico City and any other public entity.
This does not mean that the officials of the three powers will leave their work, only there will be no propaganda or dissemination around their work.
Likewise, article 251 states that during the three days prior to the election and until the closing time of the polls, it is strictly prohibited to publish, disseminate or make known by any means of communication, the results of the polls or surveys of opinion , whose purpose is to publicize electoral preferences.
"The period of reflection is not about absolute silence or restriction on the free expression and circulation of political-electoral ideas, but about the construction of a dialogue between citizens , free of any interference from political actors," explained the official. Electoral Institute.
However, the electoral body declared that it will be the only authority that will promote the Revocation of Mandate and the governmental elections, arguing that article 35 of the Political Constitution establishes that the Institute and the local public organisms, as appropriate, will promote citizen participation and will be the only instance in charge of disseminating them.
"The promotion will be objective, impartial and for informational purposes," added the Electoral Institute.
https://www.infobae.com/america/mexico/2022/02/04/revocacion-de-mandato-y-elecciones-2022-cuando-inicia-y-que-prohibe-la-veda-electoral/
Yes, Mac. I truly believe that if Mexico intends on pursuing these projects at all, and it sounds like they sure as hell do, that they will be given to Mirage. I can't imagine that they wouldn't be.
An article from this past December -
https://libertadbajopalabra.com/2021/12/09/megaproyectos-del-gobierno-federal-tambien-afectarian-a-veracruz-danarian-en-total-7-millones-de-hectareas-ambientalistas/
"In the Isthmus of Tehuantepec, two large North American companies, Mirage Energy and Northern Hemisphere Logistics, agreed to invest 800 million dollars in the construction of a gas pipeline, which is already operating through the coverage of the Federal Electricity Commission (CFE). and the company Temura."
Another article, from two months ago -
https://oaxaca.eluniversal.com.mx/municipios/campesinos-de-2-municipios-de-oaxaca-niegan-permisos-para-estudios-de-gasoducto-de-amlo?amp
"According to Beas Torres, for the construction of the gas pipeline and the liquefaction plant that will be in Salina Cruz, US companies, Mirage Energy and Northern Hemisphere Logistics, have already signed up. “With this gas pipeline they want to revive the old McLane-Ocampo Treaty, with which they wanted to give control of the Interoceanic Corridor to the US. It could be the Marcelo Ebrard-Antony Blinken Treaty”, he warns."
A third article, from last month
https://presslibre-mx.translate.goog/2022/02/19/corredor-interoceanico-la-mentira-como-norma/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en
"'Imposing lies as a habit and norm, the government of Andrés Manuel López Obrador hides from Mexico that the private investments applied to the Interoceanic Corridor of the Isthmus of Tehuantepec include transnational capital, since it has been leaked that the construction and operation of the Minatitlán- Salina Cruz, would be, for example, in charge of the American companies Mirage Energy and Northern Hemisphere Logistics'"
(BTW, none of these articles is exactly happy about it happening, which increases credibility IMO since you can't say someone was paid to make Mirage look good or anything like that. That they seem to be against it might be cause for concern, but since AMLO wants the projects to happen as I've said, I think they'll find a way around that.)
As far as timing, your guess is as good as mine. Seeing that the projects are linked to the third infrastructure package, they will almost certainly not be announced before April 10, and I wouldn't get my hopes up for even that. According to this article it will not be announced at least until after the elections in June (very last sentence of the article).
https://www.elfinanciero.com.mx/economia/2022/02/22/quienes-son-los-empresarios-que-estuvieron-con-amlo-en-la-comilona-de-despedida-a-carlos-salazar/
I personally am not that concerned about trying to pinpoint exactly when it will happen. Remember that the first package was delayed three times. That's just how they operate. AMLO seems to really want to get this done before he leaves. Considering the timeframe of these projects, we can't be too far off IMO.
Good ish, Macod. I've picked out the most relevant part and posted it here.
Stenographic version. Press conference by President Andrés Manuel López Obrador on March 11, 2022
Act led by President Andrés Manuel López Obrador from Tapachula, Chiapas
PRESIDENT ANDRÉS MANUEL LÓPEZ OBRADOR: Good morning.
We are very happy to be here in Tapachula, our southern border, here where our homeland begins. Chiapas is an important state, fundamental in the development of our country, with a good, hardworking people, full of traditions, customs, with a great culture.
{snip}
PRESIDENT ANDRÉS MANUEL LÓPEZ OBRADOR: Who's next?
QUESTION: Good morning, Mr. President.
Iván Navarro Robles, from Informative Table.
A very important issue for all Chiapas is the existence of a gas pipeline project from Salina Cruz, Oaxaca to Chiapas. This could be added to the projects that will boost the development of our southern border.
PRESIDENT ANDRÉS MANUEL LÓPEZ OBRADOR: Yes, first, the gas pipeline is being rehabilitated, that is the plan, from the gulf to Salina Cruz, and there is a project to bring gas from the isthmus to the border, we are working on it.
There is enough gas, we have gas, the Federal Electricity Commission has contracts with companies that extract gas in Texas, enough, it is a matter of putting in the infrastructure, building the gas pipelines, but it is contemplated in the project.
INTERLOCUTOR: Mr. President, what other projects are expected for this southern border, which is very important for Mexico?
PRESIDENT ANDRÉS MANUEL LÓPEZ OBRADOR: Well, I already said it, the thing about trains is very important, we are talking only about trains about an investment for Chiapas of around 30 billion pesos, for freight trains and passenger trains, and the same goes for the modernization of Puerto Chiapas. And we are going to continue helping in infrastructure and in everything that allows Chiapas to continue developing, which in recent times has already registered an economic growth that has not happened before.
So, Chiapas is moving forward and we are going to continue taking care of this border.
Here we made a decision that I think has not been forgotten: this entire border has a special tax treatment, just like the northern border, here half of the Income Tax and half of the VAT are paid in the entire border strip. The same in the case of fuels.
And we are going to continue helping, we are going to continue supporting. What is being done on the northern border is the same as on the southern border, we are going to continue investing.
INTERLOCUTOR: Thank you very much, Mr. President.
PRESIDENT ANDRÉS MANUEL LÓPEZ OBRADOR: Who's next?
QUESTION: Cristian Camacho, for Fáctico, Digital Journalism.
The interoceanic passage between the Gulf of Mexico and the Pacific Ocean has been sought since the colonial period, Agustín de Iturbide tried it at some point, Antonio López de Santa Anna, the first governor of the state of Chiapas, José de Rojas, also I try.
However, it was not until the Porfiriato that these trains began to function, but the highways and later the (inaudible) train of Ernesto Zedillo Ponce de León brought down the railway project.
Do you think you will be the first Mexican politician to be able to successfully establish the interoceanic trade corridor between the Gulf of Mexico and the Pacific Ocean? And because?
PRESIDENT ANDRÉS MANUEL LÓPEZ OBRADOR: Well, we have already started this program and we have made progress, we are already working on the modernization of the two ports, Coatzacoalcos and Salina Cruz.
In the case of Salina Cruz, a breakwater about two kilometers offshore is being built to expand the port, we are at the same time modernizing the highway from Salina Cruz to Acayucan, we are already about 65 percent advanced in modernizing the Tren del Istmo, we have five sections open there and progress is being made, already in one or two sections we are already more than 90 percent complete.
And the most important thing is that the budget has already been achieved with the customs trust to modernize the two roads, from Coatzacoalcos to Palenque, which we were running out of, and from Ixtepec to Hidalgo, here on the border. That will help a lot and it is an investment.
So, yes, we are going to make that old project a reality because it is a strategic corridor, there are 300 kilometers to join the Pacific with the Atlantic, and above all to open up the East Coast of the United States to trade, because we do not have much commercial economic relationship with the East Coast of the United States, our entire commercial relationship, which by the way is favorable to Mexico, we have with California.
So, if we resolve the issue of the corridor, we will be able to unite Asian countries with the East Coast of the United States, and the products of Mexico, because this corridor of the isthmus implies, and we already have the land for 10 industrial parks throughout the corridor, this is going to mean jobs, also with the same purpose that people have options and that they don't have to walk north, they are like development curtains. So this is going to help a lot.
I have just been relatively recently in Coatzacoalcos and there are already some ships, two so far, very large ones that move railway wagons, board the ship, from the railways, board 70 wagons, and from Coatzacoalcos they take them to Alabama, United States, and there they get off the train. That will help a lot, guaranteeing transportation.
The only limitation we have as far as I'm concerned is time. That's why I have to continue working 16 hours a day, because we don't want anything to be left in progress, for the modernization of the Ixtepec-Tapachula railway to be finished by the end of next year, this means repairing all the tracks, all the bridges, it means the purchase of trains and leave the railway operating; and the same goes for the ports, so that it does not remain in process and then not be done.
I also inform you that this entire plan for the isthmus, which includes Chiapas, in ports and in railways, industrial development, everything will be in charge of the Secretary of the Navy. As well as the Mayan Train and the new airport that is going to be inaugurated, 'Felipe Ángeles', and the Tulum airport, and the Palenque airport and the Chetumal airport, they are going to be managed by a company linked to the Secretariat of the Defense, the entire Isthmus and Chiapas project will be managed by a company depending on the Secretary of the Navy. The company is also going to be built, they are already working on it, because all this must also be accompanied by security.
And above all, what we want is that all these works are not privatized over time, that it was a miracle that the lines of the Southeast Railway were not privatized. From the isthmus to the north they left nothing, more than 20 thousand kilometers of railways. When I found out that the Ferrocarril del Istmo and the one from the southeast had not been awarded a concession, I was very happy.
Because what did these do?
As you rightly point out, during the Zedillo government they privatized the railroads. It was so shameful that they handed over all the railways, the railways, the passenger trains, were finished, only the cargo trains remained, they handed them over to two companies, more than 20 thousand kilometers and one of those companies took Zedillo to work. A shame.
So, as these lines were not granted a concession because they did not care, I have said it many times, the southeast, not even to steal they turned to look at us to the southeast, everything was to the center and to the north, so now it's different, it's time, it's the southeast time, it is for Chiapas, it is for Veracruz, for Oaxaca, Tabasco, Campeche, Yucatán, Quintana Roo, which have contributed a lot to national development and have received very little.
So that's what I can tell you.
{snip}
Thanks to everyone for the warm welcome. I have actually been following this board for over a year, but just a few days ago decided I would join in the fun and start posting. Already having a blast!
Keep your eyes on the prize, guys.
Third infra package on the way, says outgoing Mexican private sector leader
Bnamericas
Published: Friday, March 04, 2022
Mexico’s largest business association, CCE, and the federal government have finished putting together the third package of projects under the country’s infrastructure program (PNI) that was supposed to be presented at the end of January.
However, it has not been presented because the country is currently in a “quiet time” due to the April 10 recall vote on President Andrés Manuel López Obrador’s [AMLO’s] presidency,” Carlos Salazar Lomelín, CCE’s outgoing president, told newspaper Milenio.
The quiet period for the vote, in which Mexicans will decide whether AMLO is to remain in power until the end of his six-year term in 2024, started on February 4.
“We could not present it, but a third package is coming,” he said, adding that the first and second packages, comprising 68 initiatives involving 526bn pesos (US$25.7bn), have made progress.
“Together, the finance ministry [SHCP] and [CCE] reviewed the two packages that had been originally presented. I can tell you that more than 50% of the projects announced in the first and second packages have already started. They are moving forward,” Salazar said.
The first and second PNI packages, requiring investments from the private sector of above 50% of the total, were presented in October and December 2020, respectively. Package one included 39 projects and the second 29.
Although the content of package three has not been made public, Rogelio Mauricio Rivero, the head of the infrastructure, communications and transportation ministry’s (SICT) highway development unit, said in July that the package could include up to 15 communications and transportation projects involving 70bn pesos.
NEW PRIVATE SECTOR LEADER
After three years, Salazar stepped down as head of the CCE.
The 14 associations and organizations that makeup the CCE elected Francisco Cervantes Díaz, a former president of business association Concamin, as the group’s president for 2022-23.
Unlike Salazar, who confronted the Mexican government on several occasions, Cervantes is expected to make a fresh start with the AMLO administration.
https://www.bnamericas.com/en/news/third-infra-package-on-the-way-says-outgoing-mexican-private-sector-leader
Sounds like they had better get some storage, and soon.
Could Mexico's natgas supply be affected by the Russia-Ukraine war?
Bnamericas
Published: Thursday, March 10, 2022
An increase in liquefaction capacity in European countries, matched by a rise in US capacity to export natural gas by sea, is expected to have a strong medium-term impact on Mexican natural gas prices.
According to Susana Cazorla, a founding partner of consultancy SICEnrgy in Mexico City, the fact that Mexico’s supply of natural gas depends on pipeline deliveries from the US temporarily shields it from the worst price increases, but this will change sooner rather than later.
“In the US and Latin America, natural gas prices do not yet reflect the European natural gas crisis, because our dependences are different,” Cazorla told BNamericas. “Latin America’s main reference is Henry Hub in Texas, and that market is not so relevant when it comes to supplying demand in Europe and Asia. But we believe it will eventually become so.”
In response to the energy crisis caused by Russia's invasion of Ukraine, countries across Europe are planning to expand their LNG capacity to compensate for a lack of Russian supply.
A good example is Germany. After announcing it would suspend the certification process of the 1,230km Nord Stream 2 undersea natural gas pipeline in late February despite the project being completed and ready to start operation, the country will build a large-scale LNG import terminal within two years in the north.
Italy, which is similarly dependent on Russian natural gas, has also revived a previously canceled plan by utility Enel to build a large LNG terminal in southern Sicily as part of a roadmap to become completely independent from Russian gas within two and a half years. Plans to build an additional terminal, which would become Italy’s fifth, are also in discussion.
“The end-game [for the US and Europe] is to stop buying natural gas and oil from an unstable partner [Russia]. Right now there is demand, and there are incentives owing to the high price, to develop new infrastructure,” she said.
“Just as the US developed its propane and butane export potential to China and India, it will develop LNG facilities to export natural gas to Europe and Asia. When that happens, we will see natural gas prices in Mexico strongly impacted, as it happened with propane before.”
US propane exports grew from 0.17Mb/d (million barrels per day) in 2012 to 1.26Mb/d in 2020, while butane exports rose from almost zero to 0.35Mb/d, strongly affecting LPG prices in Mexico.
Exports are mostly shipped to Asia, with Japan, China and South Korea being among the most significant propane and butane buyers, together with Indonesia, Morocco, Mexico and Turkey.
While the country’s LNG liquefaction capacity was 9.5Bf3/d in November, it is expected to close 2022 with 11.4Bf3/d of capacity, surpassing the two largest LNG exporters, Australia and Qatar.
In 2024, with the start of operation of the Golden Pass LNG facility in Texas developed by Qatar Energy and Exxonmobil, US LNG peak export capacity will further increase to an estimated 16.3Bf3/d.
https://www.bnamericas.com/en/news/could-mexicos-natgas-supply-be-affected-by-the-russia-ukraine-war