AMLO to discuss power reform with US energy secretary
Mexican president Andres Manuel Lopez Obrador will meet with US energy secretary Jennifer Granholm in Mexico City this week to discuss his controversial electricity reform bill that sidelines private investors.
"We are going to discuss all the issues but, above all, we are going to inform her about the reasons behind the electricity reform," Lopez Obrador said at this daily press conference today.
Lopez Obrador sent a constitutional electricity reform bill to congress on 1 October that would restore state-owned power utility CFE's market dominance by prioritizing its dispatch and capping private-sector participation at 46pc.
The reform would revoke all private-sector generation permits — some 40,924MW, or 48pc, of Mexico's installed capacity — in a move industry lawyers say will violate the constitution and trade deals, including the US-Mexico-Canada free trade agreement (USMCA).
US diplomats have voiced concerns about the reform and the issue was also raised ahead of a March 2021 meeting between US president Joe Biden and his Mexican counterpart.
Mexico's government argues the reform does not breach free trade agreements as it draws on the state's constitutional right to prioritize the public interest over private-sector interests.
Mexico explicitly reserved its sovereign right to change the constitution and other legislation on energy matters in Chapter 8 of the USMCA, the government has said.
Lopez Obrador's Morena party is short of the two-thirds congressional majority required to pass the constitutional reform bill. The government is hoping to persuade opposition PRI party legislators to vote in favor of the bill in congressional forums that start today.
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Energy firms on alert after flooding in Europe: Update
Energy firms on alert after flooding in Europe: Update
Adds details throughout Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas. Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak. Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Energy firms on alert after flooding in central Europe
Energy firms on alert after flooding in central Europe
Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest part of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today. Prime minister Donald Tusk said he has ordered preparations for the declaration of a state of natural disaster. Polish utility company Tauron, which operates the electricity distribution system in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice. And local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and is in contact with authorities. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Data centers may be 'wild card' for gas demand
Data centers may be 'wild card' for gas demand
Chicago, 12 September (Argus) — The propagation of data centers in coming years could lead to a huge increase in daily natural gas demand, industry forecasters say, with one projecting up to 30 Bcf/d (850mn m³) in higher demand. Data centers represent a "global wild card" that could increase gas demand by 3-30 Bcf/d in coming years to satisfy the facilities' needs for consistent air conditioning and power, energy infrastructure company Tallgrass director of analytics Robert Applegate told participants at the Midcontinent LDC Gas Forum in Chicago, Illinois, on Wednesday. Financial services firm Macquarie head of economics David Doyle said power demand from data processing centers is a "theme that's not going away". Gas market consultancy East Daley Analytics senior director Jack Weixel projects the US will need 20GW of combined cycle units to handle the increase in power demand generated by data centers, with cities like Phoenix and Chicago requiring more gas to accommodate the growth of data centers. The panelists' views were largely aligned with the current discussion within the natural gas sector about the effects of data centers. Canadian pipeline company TC Energy chief operating officer Stan Chapman has projected that 300 new data centers would need between 45-50GW of power to run , while gas producer EQT's most aggressive scenario predicted an 18 Bcf/d increase to meet data center electrical demand. By Anna Muthalaly Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Victoria seeks further gas storage capacity
Australia’s Victoria seeks further gas storage capacity
Singapore, 12 September (Argus) — The state Labor government of Victoria will introduce laws to allow offshore gas storage projects in its waters as it grapples with a predicted supply deficit because of declining Bass strait production. Victoria, which is Australia's largest user of household and commercial gas, will allow gas to be stored in empty gas reservoirs offshore in a bid to boost supply security, Victorian energy minister Lily D'Ambrosio said on 11 September. But the state's waters extend three nautical miles offshore, meaning the laws will not cover most of the state's depleted fields in the Otway and Gippsland basins which lie in federally administered zones. Victoria's largest storage is the 26PJ (694.3mn m³) onshore Iona facility in the state's west, owned by domestic gas storage firm Lochard Energy which plans to expand its capacity by 3PJ . But further capacity is needed to help bridge seasonal gaps, with the new laws possibly advancing privately-owned GB Energy's Golden Beach gas project, which could add 12.5PJ of storage to the grid. The Gippsland basin joint venture (GBJV) and Kipper Unit JV which feed the three Longford gas plants in the state's east have historically supplied about 60pc of southern states' gas, but operator Exxon plans to close one of the plants in July-October , cutting the 1.15 PJ/d facility's capacity to 700 TJ/d and further to 420 TJ/d later this decade. GBJV operated just 50 producing wells and six gas platforms in the 2024 southern hemisphere winter, with Exxon expecting a 70pc reduction in the number of wells from 2010 levels by next winter. The Australian Energy Market Operator's (Aemo) 2024 Victorian Gas Planning Report (VGPR) update confirmed the need for greater supply in Victoria, as declining demand would not offset the loss of supply from the GBJV. Peak southern state winter demand exceeds 2 PJ/d, but at full capacity, pipelines linking Queensland state's coal-bed methane fields to the southern states can meet only 20pc of such demand. Coal and gas-dependent Victoria this year approved its first nearshore gas project in a decade as the government softens its anti-gas stance. LNG import plans The possibility of LNG imports is firming in Victoria, with Australian refiner Viva Energy announcing public consultation has begun on its supplementary environmental effects statement (EES) for a planned floating storage and regasification unit, adjacent to its 120,000 b/d Geelong refinery. The Geelong LNG terminal would have the capacity to supply more than half of Victoria's current gas demand, Viva said on 12 September. The terminal's surplus gas could also flow into the connected southern states of South Australia, New South Wales and Tasmania. A public hearing into the proposal, which could see the import of 45 cargoes/yr, is expected to be held in December before an independent committee reports to the state's planning minister next year. Subject to a final investment decision, works could commence in 2026 to deliver first gas for winter 2028, Viva said, aligning with Aemo's expected shortfall of 50PJ in that year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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