Mexico’s liberalized natural gas market in an era of nationalism

In December, Mexico’s energy market reform turned five years old. The event was unceremoniously marked by the inauguration of Andres Manuel Lopez Obrador, or AMLO—a nationalist, left-leaning presidential candidate elected partly on a promise to dismantle it. While the recent growth of Mexico’s reformed gas market has surpassed the expectations of many, it now faces new challenges ahead. In an early move that rattled investors, president-elect Lopez Obrador in October announced the cancellation of Mexico City’s new international airport. The decision followed an unofficial, popular referendum on the project that AMLO called an exemplary exercise of democracy. Referendums, which have been subsequently used to determine the fate of even major energy infrastructure projects, are now the hallmark of a president bent on redefining Mexico’s sovereignty. The emerging challenges to Mexico’s natural gas market, though, extend beyond those posed by AMLO. In the midstream, aging infrastructure at the country’s gas processing plants threatens the viability of domestic production. For imported supply too, tough environmental laws and land-use regulations in Mexico challenge the viability of critical gas transmission projects. In downstream markets, supply scarcity, particularly in southern Mexico, continues to starve out many industrial users and power generators. Even across parts of… continue reading

Continue reading Mexico’s liberalized natural gas market in an era of nationalism. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply