Energy reform was bad news for mining companies. The reform has delayed 41% of mining licenses (Spanish). Before the reform, obtaining a license took 120 days, nowadays it takes 170 days because the Economy Ministry’s mining coordinator must request information from the Energy Ministry about oil and gas reserves on mining lands.
Oil pipelines operating at full capacity. The storage and transportation infrastructure of LP gas and gasoline is maxed out from Guadalajara and Zacatecas to Oaxaca and Veracruz. The infrastructure can only hold inventories to cover two days of demand and operates at 90% of pipeline capacity (Spanish).
Campeche suffers Pemex's crisis. In Campeche, the critical financial situation of the state-owned company has resulted in 11,000 jobs lost, businesses closed, and a drop in investments (Spanish). The Finance Ministry announced incentives and tax exemptions for Campeche and Tabasco to reactivate the states’ economies (Spanish).
Ejidatarios blocked the Tula pipeline. Four communities of Atotonilco de Tula, Hidalgo, oppose construction of the pipeline which will supply the CFE’s Francisco Pérez Ríos plant, delaying it for seven months. The pipeline is 15km long and lacks less than a kilometer to be completed (Spanish).
CFE consumed more fuel oil; Pemex is to blame. Although the CFE promised to reduce its use of fuel oil by 90%, its consumption doubled to almost 600 MMcf in the first quarter (Spanish). This is due to interruptions in Pemex's gas supply caused by reduced production following industrial accidents (Spanish).
You must subscribe to The Weekly Brief: Mexico to see this article.
If you are currently a subscriber, please log into your account below.
If you are not yet a subscriber, sign up for a free one-month trial here.