Today’s global context of low oil prices does not represent a threat to energy investments in Mexico, though, a resources assignment strategy change is implied.
A new timeline in this economic turmoil sets
investments developments to be focalized
on updating and scaling the infrastructure
network, while oil prices recover.
Round One bid winners, as of today, have not
withdrawn from the process, holding their investment
position plans and interest in Mexico.
The current situation could be seen as an opportunity
to detonate investments in some enterprises
with infrastructure developments, to anticipate
and take advantage of a better pricing framework.
Many project developments are on construction
nowadays. On the gas sector, pipeline network
expansions are well on their way. The second
phase of “Los Ramones” is about to go live,
which will supply to industrial and commercial
parks in San Luis Potosí, Guanajuato and Querétaro
States. The third phase of this mega-project
is under construction.
Also, the North-Northwest gas pipeline is
in progress, this one runs from the border line
through the state of Sinaloa, promoting not only the energy sector, but will also detonate production
of added value products mainly in the
agroindustry of Sinaloa.
President Enrique Peña Nieto announced that
since April 1st. the private sector will be able to
import gasoline & diesel for local distribution.
It was meant to go in force until 2017 in accordance
with the guidelines of the Mexican Energy
Reform. Situation that allows for anticipated
investments on pipelines and storage segment,
maximizing economic benefits for petroleum
products importing enterprises.
Why does Mexico’s gasoline price exceeds 13
pesos/lt today? Net cost per litter of imported
gasoline is, on average, 11 pesos, depending on
its transportation mode. If carried by pipelines
it could decrease to around 9 pesos/lt., giving as
much as 4 pesos margin to importers. Unfortunately,
Petróleos Mexicanos’s (PEMEX) pipelines
are up to their limit capacity, compelling reason to
make investments in pipelines and storage tanks On the other hand, delayed
infrastructure developments
must be overcome in the near
future. For example, in Cantarell
and another oil fields,
short term investments are required
for oil & gas extraction,
including fracking technique
that consumes great amounts
of water, for which treatment
plants are also required.
Another area where important investments are taking
place is the Power sector, with
new transmission line projects,
wind and solar cell farms for
sustainable energy production.
Infrastructure investments
represent the other side of the
coin for the oil sector. Its execution
will generate an adequate
environment to take advantage
of future bonanza times of high
oil prices, which will surely be
seen again, although, not in the
short term.