Wednesday, March 5, 2014

Peña presents his energy strategy

Wednesday, 05 March 2014 00:10
THE NEWS


President Enrique Peña Nieto presented his 2014-28 National Energy Strategy to the Senate on Tuesday, containing a diagnostic of the current state of Mexico’s energy sector, as well as the projected impact of last year’s energy reform and the future investments in hydrocarbon and electricity production that it is expected to promote.

According to the strategy document, the reform will accelerate the investment process in the energy sector, allow for a more diversified portfolio of domestic energy projects, eliminate bottlenecks, improve efficiency, promote social inclusion and strengthen the country’s political institutions.

Peña Nieto projects that the reform will have boosted Mexico’s Gross Domestic Product (GDP) by an estimated 1 percent by 2018 — the year he will leave office — and by almost 2 percent by 2025, by which time he said that 2.5 million new jobs will have been created in the energy sector.

The strategy document states that the country is currently in a critical period for the success of the reform, as Congress still has yet to pass secondary legislation that will regulate the terms under which privately-owned companies will be able to invest in the Federal Electricity Commission (CFE) and state-run oil company Pemex.

The Energy Secretariat must also define the areas in which Pemex can engage in oil and natural gas exploration and production, in accordance with the technical consulting of the national Hydrocarbons Commission (CNH), which will be responsible for developing and maintaining databases on the oil reserves and geological conditions in different regions of the country.

The CNH will also issue the technical requirements that potential business partners of Pemex must meet in order to be awarded contracts, while the Regulatory Energy Commission (CRE) will be in charge of granting permits for the transportation, storage and distribution of gasoline, natural gas and other hydrocarbon-derived products.


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