Mexican industry prepares lawsuits on power reform
Companies in an array of sectors from manufacturing to convenience stores plan to pursue legal action against the Mexican government if congress approves a proposed power sector reform bill.
More than 500 domestic and foreign companies are planning to file amparos, or constitutional appeals, against the proposed reform, said Jorge Arrambide, a Mexican attorney representing companies preparing legal action.
"Without a doubt, we are expecting a tsunami of amparos," said Adrian Sada, chief executive of Mexican glass producer Vitro and head of industrial chamber Caintra. "[The reform] violates many rights for practically all the small, medium and large industrial companies."
The bill, approved by the lower house of congress and under debate in the upper house today, seeks to prioritize power dispatch generated by state power company CFE, revoke self-supply permits and review all long-term power purchase agreements with independent power producers.
The reform would raise the cost of electricity for manufacturers and would put at risk arrangements to buy electric power directly from generators at lower prices, said Sada, whose company is the largest glass producer in Mexico.
"Many investors came to produce or invest in our country, and many Mexican companies invested in electric power generation, with certain rules of the game that are now being threatened," he said.
Companies are already preparing injunctions that allege the proposed law violates the Mexican constitution in areas such as free competition and environmental protection, said Arrambide, an attorney at law firm Santos Elizondo.
Some appeals also allege violations to international agreements such as the US-Mexico-Canada free trade agreement (USMCA), he said.
Foreign firms may also pursue international arbitrage under USMCA, but will begin with appeals in Mexico because they are quicker and can suspend immediate implications for plaintiffs, Arrambide and Caintra said.
Companies that file successful injunctions will not have to abide by the reform, but such actions will not undo the law or suspend it for other companies, he said.
Sada said the appeals have a "very high probability of success" because judges have ruled in favor of similar legal actions in the past. Arrambide also said he expected judges to rule in favor of the injunctions.
"The federal government has not considered the magnitude of the impact that this law will have," said Guillermo Dillon, director general of Caintra. "When [the law] moves forward, the government will be overwhelmed by the repercussions."
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Taiwan's scrap imports fall in March as demand slows
Taiwan's scrap imports fall in March as demand slows
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Pemex fuel output surges, imports down in March
Pemex fuel output surges, imports down in March
Mexico City, 29 April (Argus) — Mexico's state-owned Pemex increased its gasoline and diesel output by 32pc in March from a year earlier, cutting its road fuels imports by 25pc year over year. Pemex's gasoline and diesel output at its six domestic refineries amounted to 562,300 b/d in March, up from 427,100 b/d in the same month of 2023, according to the company's monthly data published on 26 April. Gasoline production rose by 27pc to 350,400 b/d in March year over year. Gasoline output increased by 13pc from February. Pemex's gasoline imports fell by 16pc in March from a year prior, driven by increased domestic production. On a monthly basis, gasoline imports fell by 18pc from February. The company's diesel output surged by 40pc to 211,900 b/d in March year over year, driving imports down by 43pc to 112,500 b/d (see table) . Diesel production was 26pc higher in March compared with February. Road fuels output increased as Pemex's refining system processed 23pc more crude — 1.06mn b/d — in March from the prior year, as result of billion-dollar investments since 2019 to rehabilitate Pemex's refineries and a decline in crude exports . Pemex's regular 87-octane gasoline domestic sales remain almost steady at 527,400 b/d in March from a year earlier. In contrast, 92-octane premium gasoline sales rose by 11pc to 132,800 b/d year over year, as demand for premium gasoline in Mexico has increased this year. The company's diesel sales ticked up by 1pc in March from a year earlier and were 3pc above February sales. Pemex's domestic sales of refined products accounted for 75.6pc of the company's total revenue in the first quarter, Pemex said during its earnings call on 26 April. This compares to a 70.8pc share in full-year 2023, the company said. By Antonio Gozain Pemex fuel production, imports and sales '000 b/d Product Mar 24 Feb 24 Mar 23 YOY ±% Monthly ±% Production Gasoline 350 310 275.5 27.2 12.9 Diesel 212 168 152 39.8 26.0 LPG 110.0 104.0 100.3 9.7 5.8 Jet fuel 38 38 46 -17.1 1.6 Imports Gasoline 307 376 366.0 -16.1 -18.4 Diesel 112 119 196 -42.5 -5.1 LPG 69 100 101 -31.8 -31.1 Internal sales Regular gasoline 527 520 527 0.1 1.5 Premium gasoline 133 134 120 10.9 -0.7 Diesel 261.0 254.0 258 1.2 2.8 ULSD 30.0 28 32 -4.8 8.3 Jet fuel 95 97 94 1.0 -2.3 LPG 167 194 164 2.0 -13.8 Jet fuel and premium gasoline imports and ULSD imports and production are not broken out Pemex Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Norway's marine bio mandate ineffective: Marine market
Norway's marine bio mandate ineffective: Marine market
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