CAMER – Business News Updates https://newsdaily.business Wed, 18 Jan 2023 22:01:34 +0000 en hourly 1 https://wordpress.org/?v=6.4.3 https://newsdaily.business/wp-content/uploads/2021/02/cropped-handshake-hand-gesture-dollar-money-finance-coin_96px-32x32.png CAMER - Business News Updates https://newsdaily.business 32 32 Exclusive: Mexico’s Pemex destroyed resources worth $342 million from two top fields https://newsdaily.business/2023/01/18/exclusive-mexicos-pemex-destroyed-resources-worth-342-million-from-two-top-fields/ https://newsdaily.business/2023/01/18/exclusive-mexicos-pemex-destroyed-resources-worth-342-million-from-two-top-fields/#respond Wed, 18 Jan 2023 22:01:34 +0000 https://newsdaily.business/2023/01/18/exclusive-mexicos-pemex-destroyed-resources-worth-342-million-from-two-top-fields/ MEXICO CITY, Jan 18 (Reuters) – Mexican state oil company Pemex illegally burnt off hydrocarbon resources worth more than $342 million in the three years up to August 2022 at two of its most important new fields, internal documents from the country’s oil regulator showed. The three documents, produced by the regulator and dated August […]]]>


MEXICO CITY, Jan 18 (Reuters) – Mexican state oil company Pemex illegally burnt off hydrocarbon resources worth more than $342 million in the three years up to August 2022 at two of its most important new fields, internal documents from the country’s oil regulator showed.

The three documents, produced by the regulator and dated August 2022, detail how Pemex (PEMX.UL) destroyed resources worth $275 million from the Ixachi field in three years and $67 million from the Quesqui field in two years.

To calculate the value, the regulator used prices from non-public contracts to commercialize such hydrocarbons.

Neither Pemex nor the energy ministry responded to requests for comment.

Late last year, Pemex said it would stop the flaring practice at Ixachi following Reuters reports on development plan violations at the two fields and related fines.

Under pressure to meet ambitious production goals by Mexican President Andres Manuel Lopez Obrador, has repeatedly been fined by the oil regulator for violating its own pledges for the development of the Ixachi and Quesqui fields.

The plans, for the exploration and production of natural gas and other hydrocarbons in the southeastern states of Veracruz and Tabasco, were approved by the regulator – which is responsible for ensuring compliance.

Burning off gas and condensate – a mixture of liquid hydrocarbons similar to a very light crude oil – has also resulted in extensive environmental damage.

Reuters reported last year that Pemex had been excessively flaring gas across the region, but the value of the destruction has not previously been reported.

Mexico – the world’s eighth-biggest gas flarer – is under increasing pressure, including from the United States, to cut the practice and methane emissions.

Managing emissions is set to become more challenging as fields age and the world’s most indebted oil company lacks sufficient funds to upgrade ailing infrastructure.

In Ixachi, the destruction was particularly dramatic because production started a year earlier. There, the documents show Pemex burnt off some 62.9 billion cubic feet of gas and 310,000 barrels of condensate.

That is the equivalent of 31% of the total amount of gas produced from the field, and 1.3% of total condensate, according to Reuters calculations.

The documents were sent to the country’s energy minister, Rocio Nahle, the head of regulatory compliance at Pemex’s exploration and production arm, and senior officials at the regulator and the interior ministry.

MISSING INFRASTRUCTURE

Pemex produced 201.2 billion cubic feet of gas and 24.3 million barrels of condensate from Ixachi. But it still fell short of its targets.

The documents also show that 77.6% of the investment into the field Pemex had pledged in its development plan – totaling $2.9 billion – were not made.

Lopez Obrador declared early on in his presidency that Ixachi and Quesqui formed part of 17 new priority fields expected to dramatically boost national production as part of a wider effort to make the country energy independent.

The fields were meant to receive more resources so Pemex can start exploration and production earlier and faster and make up for declining production from ageing fields elsewhere.

But Pemex failed to complete the wells, pipelines and other infrastructure needed to produce gas and condensate from the fields without high levels of waste.

In Ixachi, the destruction of value from burning off condensate was more than $21 million in three years; in Quesqui, it was almost $8 million in two years, the documents show.

It has not previously been reported that condensate was also burnt off at the fields. Under Mexican law, documentation around such violations is not made public.

“The objective should be to maximize making use of all hydrocarbon products in the field,” one of the documents said, adding that “(Pemex) does not meet production it committed to because wells and infrastructure are not in place”.

In the documents, the regulator also recommends changes so that Pemex “avoids the burning off and the destruction of commercial value of the hydrocarbon products.”

Pemex has historically deemed investing in infrastructure to explore and produce gas too expensive and instead imported much of it from the United States.

In recent years, it has come under pressure because of the environmental damage associated with burning off gas.

Late last year, Pemex acknowledged in its updated business plan for 2023 to 2027 that its poor environmental, social and governance (ESG) record risked hurting its financing as rivals were transitioning faster to clean energies.

Reporting by Stefanie Eschenbacher
Editing by Stephen Eisenhammer and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.



Read More:Exclusive: Mexico’s Pemex destroyed resources worth $342 million from two top fields

2023-01-18 21:31:00

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Salvadoran lawmakers pass digital asset issuance law in bitcoin haven https://newsdaily.business/2023/01/11/salvadoran-lawmakers-pass-digital-asset-issuance-law-in-bitcoin-haven/ https://newsdaily.business/2023/01/11/salvadoran-lawmakers-pass-digital-asset-issuance-law-in-bitcoin-haven/#respond Wed, 11 Jan 2023 22:20:54 +0000 https://newsdaily.business/2023/01/11/salvadoran-lawmakers-pass-digital-asset-issuance-law-in-bitcoin-haven/ SAN SALVADOR, Jan 11 (Reuters) – El Salvador, which became the first country in the world to recognize bitcoin as a legal tender two years ago, approved on Wednesday a law that would regulate the issuance of other digital assets by both the state and private entities. The bill, backed by ruling party lawmakers allied […]]]>


SAN SALVADOR, Jan 11 (Reuters) – El Salvador, which became the first country in the world to recognize bitcoin as a legal tender two years ago, approved on Wednesday a law that would regulate the issuance of other digital assets by both the state and private entities.

The bill, backed by ruling party lawmakers allied with President Nayib Bukele, aims to attract national and foreign investors while creating new financing opportunities for citizens, companies and the government.

Lawmakers in the unicameral Congress dominated by Bukele’s New Ideas party passed the proposal in an overwhelming majority vote of 62 in favor and only 16 opposed.

“The purpose of this law is to establish the legal framework that grants legal certainty to transfer operations to any title of digital assets used in public issuance offers,” according to the legislation.

Public offerings may be made by issuers using existing digital assets, with the opportunity to create new ones through them, the law indicates.

The law also establishes the creation of the National Commission for Digital Assets and the Bitcoin Funds Administration Agency, which will be in charge of managing, safeguarding, and investing the funds from public offerings of digital assets carried out by the government.

The provisions of the law are not applicable to digital currencies issued by central banks of any country or territory, whether so-called fiat currency issued by those banks or crypto-currencies.

It also would not apply to digital assets that by law are legal tender such as bitcoin, in addition to the video game ecosystem or Non-Fungible Tokens.

Bukele’s office did not immediately respond to a request for comment asking whether the new legislation would apply to the launch of bitcoin volcano bonds that the president announced in late 2021.

Nonetheless, President Bukele shared on Twitter a message from the country’s bitcoin office saying the law also paves the way for volcano bonds to be issued soon.

Reporting by Nelson Renteria; Editing by Ana Isabel Martinez; editing by Diane Craft

Our Standards: The Thomson Reuters Trust Principles.



Read More:Salvadoran lawmakers pass digital asset issuance law in bitcoin haven

2023-01-11 21:57:00

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Analysis: Is the party over? Mexico’s peso could lose solid gains in 2023 https://newsdaily.business/2022/12/30/analysis-is-the-party-over-mexicos-peso-could-lose-solid-gains-in-2023/ https://newsdaily.business/2022/12/30/analysis-is-the-party-over-mexicos-peso-could-lose-solid-gains-in-2023/#respond Fri, 30 Dec 2022 03:57:47 +0000 https://newsdaily.business/2022/12/30/analysis-is-the-party-over-mexicos-peso-could-lose-solid-gains-in-2023/ MEXICO CITY, Dec 29 (Reuters) – Mexico’s peso, which is ending 2022 with one of its strongest performances in a decade, could have its gains wiped out in 2023 after an expected end to the Bank of Mexico’s rate hikes cycle and a possible recession in top trade partner the United States. The peso last […]]]>


MEXICO CITY, Dec 29 (Reuters) – Mexico’s peso, which is ending 2022 with one of its strongest performances in a decade, could have its gains wiped out in 2023 after an expected end to the Bank of Mexico’s rate hikes cycle and a possible recession in top trade partner the United States.

The peso last month clawed its way back to pre-pandemic levels and has appreciated over 5% versus the U.S. dollar in 2022, making it one of the best-performing global currencies alongside Brazil’s real .

But the peso’s impressive run may be ending as markets expect the large capital flows to Mexico in recent months, attracted by the Bank of Mexico’s restrictive monetary policy stance, could soon start to slow.

Banxico, as the central bank is known, has been increasing its benchmark interest rate since June 2021 to stem inflation, and hiked it to a record 10.5% at its last policy meeting.

In the coming months, Banxico is expected to end its rate hiking cycle and likely decouple from the U.S. Federal Reserve, which is seen continuing to increase rates. That would narrow the rate differential and could spark an outflow of capital.

“The carry trade, the phenomenon that has benefited (the peso) this year, will likely dissipate a bit,” said CI Banco analyst James Salazar. The carry trade refers to a trading strategy of taking advantage of yield differences between Mexico and other economies.

The peso’s strength, which President Andres Manuel Lopez Obrador often boasts as one of his government’s big accomplishments, has also benefited from a robust inflow of remittances, growth in exports and foreign direct investment.

Concerns about a U.S. recession and a trade spat Mexico is embroiled in with the United States and Canada over Lopez Obrador’s energy policy, which critics call nationalist, muddy the outlook for the peso.

“The perception of risk could rise due to the consultations in the framework of the USMCA (trade deal), which could lead to the imposition of measures against Mexico,” said Banco Base.

Traders at the Chicago Mercantile Exchange, considered a bellwether of market sentiment, have started to bet the peso will begin depreciating.

Reporting by Noe Torres; Writing by Anthony Esposito; Editing by Josie Kao

Our Standards: The Thomson Reuters Trust Principles.



Read More:Analysis: Is the party over? Mexico’s peso could lose solid gains in 2023

2022-12-29 21:49:00

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Latin America’s ‘pink tide’ may have hit its high-water mark https://newsdaily.business/2022/12/22/latin-americas-pink-tide-may-have-hit-its-high-water-mark/ https://newsdaily.business/2022/12/22/latin-americas-pink-tide-may-have-hit-its-high-water-mark/#respond Thu, 22 Dec 2022 15:39:47 +0000 https://newsdaily.business/2022/12/22/latin-americas-pink-tide-may-have-hit-its-high-water-mark/ Dec 22 (Reuters) – Dramatic elections in Brazil, Chile and Colombia brought leftist governments into power across much of Latin America in 2022, capping the region’s second “pink tide” in two decades. However, their struggles amid stubborn economic headwinds suggest the wave may have crested. An anti-incumbent streak that lifted the left could soon swing […]]]>


Dec 22 (Reuters) – Dramatic elections in Brazil, Chile and Colombia brought leftist governments into power across much of Latin America in 2022, capping the region’s second “pink tide” in two decades.

However, their struggles amid stubborn economic headwinds suggest the wave may have crested. An anti-incumbent streak that lifted the left could soon swing major elections the other way.

To have the same staying power as the left-wing renaissance at the turn of the century, governments will need to reignite economies that have frustrated voters and investors alike during a decade of mostly mediocre growth.

Chilean President Gabriel Boric, 36, took office in March as his country’s most progressive leader in half a century and its youngest ever. But setbacks including the rejection of a new constitution have dented his popularity and forced concessions to the center, including swapping some of the youthful cohort in his cabinet for more experienced establishment figures.

Colombia also swung sharply to the left with June’s election of Gustavo Petro, a 62-year-old former guerrilla vowing to tackle inequality with tax and land reforms. He has shored up fiscal concerns with the former, but spooked investors with a proposed ban on new oil and gas exploration and second-guessing of central bank policy.

Brazilian President-elect Luiz Inacio Lula da Silva, 77, who narrowly beat incumbent Jair Bolsonaro in October, is a holdover from the region’s first pink tide, when a commodity boom helped him finish his 2003-2010 presidency with record approval.

However, corruption scandals and economic mismanagement under his chosen successor tarred Lula’s legacy. Deep polarization, an aging workforce and a bigger public debt load will make it nearly impossible for him to repeat such sky-high popularity.

WHY IT MATTERS

While the domestic impacts are still playing out, Latin America’s progressive slant – which also includes the previously elected presidents of Mexico, Argentina and Bolivia – has reshaped regional diplomacy.

Many leftist leaders have taken a friendlier approach toward authoritarian governments in Venezuela, Nicaragua and Cuba, making it harder for the United States and allies to put on pressure.

While Chile’s Boric spoke out on human rights abuses under Venezuelan President Nicolas Maduro, both Petro and Lula have been eager to restore diplomatic ties with Caracas.

The region’s ideological sympathies were on display in December when Peru’s leftist former President Pedro Castillo tried to dissolve Congress before it removed him from office in an impeachment vote.

The governments of Mexico, Colombia, Argentina, Bolivia and Honduras condemned Castillo’s ouster, with some referring to it as a “coup.” The U.S. State department said it “welcomes” the appointment of his successor, President Dina Boluarte.

Lula recognized Castillo’s ouster as “constitutional,” but did not condemn his attempt to shut down the legislature.

WHAT IT MEANS FOR 2023

The region’s new pink tide has a distinct green tint, as progressive movements have embraced the fight against climate change. While old guard leftists like Mexican President Andres Manuel Lopez Obrador are still bullish on fossil fuels, many of his peers are embracing renewable energy and conservation.

Lula’s top foreign adviser has called for Brazil to host a summit of Amazon rainforest nations in the first half of 2023, along with developed countries interested in its preservation.

However, that and other efforts at elusive “regional integration” built on common ideology could face a closing window of opportunity.

Castillo, ousted about a year and a half after his election, may not be the only leftist leader to face difficult times.

Argentine President Alberto Fernandez is nursing an approval rating around 20% ahead of an October election in which he and his allies would face long odds – a reminder that this pink tide may soon, once again, be turning.

Explore the Reuters round-up of news stories that dominated the year, and the outlook for 2023.

Writing by Brad Haynes
Editing by Christian Plumb and Rosalba O’Brien

Our Standards: The Thomson Reuters Trust Principles.



Read More:Latin America’s ‘pink tide’ may have hit its high-water mark

2022-12-22 12:09:00

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Tackling debt, Enel to sell assets and focus on six markets https://newsdaily.business/2022/11/22/tackling-debt-enel-to-sell-assets-and-focus-on-six-markets/ https://newsdaily.business/2022/11/22/tackling-debt-enel-to-sell-assets-and-focus-on-six-markets/#respond Tue, 22 Nov 2022 17:44:47 +0000 https://newsdaily.business/2022/11/22/tackling-debt-enel-to-sell-assets-and-focus-on-six-markets/ Enel aims to cut debt with asset sales Commits to zero carbon by 2040CEO’s future to be settled next year Looking at solar panel plant in United States MILAN, Nov 22 (Reuters) – Enel (ENEI.MI) plans asset sales worth 21 billion euros ($21.5 billion) to cut its debt pile and focus its transition to cleaner […]]]>


  • Enel aims to cut debt with asset sales
  • Commits to zero carbon by 2040CEO’s future to be settled next year
  • Looking at solar panel plant in United States

MILAN, Nov 22 (Reuters) – Enel (ENEI.MI) plans asset sales worth 21 billion euros ($21.5 billion) to cut its debt pile and focus its transition to cleaner energy on six main markets in Europe and the Americas.

The process to exit from Argentina and Peru and sell assets in Romania is already under way and the bulk of the disposal plan should be achieved by the end of next year, executives said on Tuesday as they presented the 2023-25 strategy update.

The state-controlled group intends to invest around 37 billion euros in the next three years in its core markets of Italy, Spain, the United States, Brazil, Chile and Colombia.

Enel’s debt had climbed to 69 billion euros at the end of September and the group aims to lower it to 51-52 billion euros by the end of next year.

The energy sector endured three tough years, marked first by swings in demand due to the pandemic and then volatility in prices triggered by the war in Ukraine, Enel CEO Francesco Starace said.

Integrated groups, which cover a range of businesses from the production of energy to its distribution and its sale, are more robust, he said.

“In order to cope with volatility we need to have an integrated position. Where do we have it? In these six countries… so let’s focus on these and get out of the others,” Starace told reporters.

One of the world’s biggest green energy groups, Enel also confirmed its plans to become carbon-free by 2040 as it shifts away from fossil fuels towards greater use of renewables.

Starace, who is 67 and has led Enel since 2014, indicated he would like to stay on when his current term expires next year.

“I like this work, it is a great job,” he told analysts, adding it was up to shareholders including the state to decide on whether he stayed.

OUT OF GAS

Shares in Enel, which have lost around a quarter of their value this year as higher costs weighed on profits, were up 0.6% in afternoon trade, paring earlier gains.

Analysts welcomed the strategy update but questioned executives on how the company could grow core profit while slimming down the business.

Higher sales volumes, higher prices in renewed long-term contracts and an effort to substitute gas bought from others with its own renewable production would be the levers for driving growth, CFO Alberto De Paoli said.

De Paoli said Enel had currently 10 billion euro liquidity locked in deposits to guarantee derivative trades on energy. The group has asked state-owned agency SACE for a financial umbrella to be activated in case of it needs to increase guarantee deposits, he said, confirming a Reuters report.

A deal to exit Enel’s gas business in Chile could be done by the end of this year, Starace said, adding that would trigger the sale of its Spanish gas portfolio owned through its subsidiary Endesa (ELE.MC).

“Let’s get out of gas because that is going to be less and less important going forward,” Starace said.

Russia’s invasion of Ukraine has underlined the importance of energy independence, Starace added.

He cited the expansion of a solar panel plant in Sicily as an example of this and added that a similar project was being evaluated in the United States.

Enel pledged to pay investors a 0.43 euro dividend per year for the 2023-2025 period, up from 0.40 euros in 2022.

($1 = 0.9761 euros)

Reporting by Francesca Landini; writing by Keith Weir; editing by Jason Neely and Jon Boyle

Our Standards: The Thomson Reuters Trust Principles.



Read More:Tackling debt, Enel to sell assets and focus on six markets

2022-11-22 16:47:00

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Mexico vows to double renewable energy capacity by 2030 https://newsdaily.business/2022/11/15/mexico-vows-to-double-renewable-energy-capacity-by-2030/ https://newsdaily.business/2022/11/15/mexico-vows-to-double-renewable-energy-capacity-by-2030/#respond Tue, 15 Nov 2022 05:10:40 +0000 https://newsdaily.business/2022/11/15/mexico-vows-to-double-renewable-energy-capacity-by-2030/ MEXICO CITY, Nov 14 (Reuters) – Mexico has pledged to deploy a further 30 gigawatts in renewable energy capacity by 2030, the nation’s Foreign Ministry said in a statement on Monday, as America’s third-biggest greenhouse gas emitter works with the United States to meet new climate goals. Foreign Minister Marcelo Ebrard traveled to Egypt to […]]]>


MEXICO CITY, Nov 14 (Reuters) – Mexico has pledged to deploy a further 30 gigawatts in renewable energy capacity by 2030, the nation’s Foreign Ministry said in a statement on Monday, as America’s third-biggest greenhouse gas emitter works with the United States to meet new climate goals.

Foreign Minister Marcelo Ebrard traveled to Egypt to attend the COP27 climate summit, where he met with U.S. climate envoy John Kerry and over the weekend presented Mexico’s plans to invest some $48 billion in developing renewable energy.

The new solar, geothermal, wind and hydroelectric capacity would double Mexico’s renewable capabilities, from its installed capacity of around 30 GW at the end of 2021, and bring solar and wind capacities to 40 GW.

“This new national renewable goal will be a foundation for achieving Mexico’s updated nationally determined contribution,” the ministry said, a week after Mexico said it would raise its emissions reduction target for the first time since 2016.

The new goals would also see Mexico, a major car manufacturing hub, sell 50% zero-emissions vehicles by 2030.

The United States said it welcomed the plan and would work closely with Mexico by helping incentivize investments and support plans to cut methane emissions. Mexico has earmarked $2 billion to eliminate routine flaring at state oil firm Pemex.

Pemex said Saturday it would work with the U.S. Environmental Protection Agency to develop an emissions-cutting plan in the first half of next year, after satellite data showing vast volumes of natural gas flaring and methane leaks drew fresh scrutiny.

“The United States looks forward to further cooperation with Mexico,” the embassy said Monday, highlighting that efforts would respect each country’s sovereignty.

The United States – the world’s No.2 greenhouse gas emitter – is in talks with Mexico over tighter state control of its energy sector, which the United States argues unfairly hinders private renewable projects.

Last week, Ebrard told a news conference Mexico must ramp up clean energy production faster than the United States to ensure it complies with demand for goods to be made with more environmentally friendly inputs.

Reporting by Sarah Morland; Editing by Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.



Read More:Mexico vows to double renewable energy capacity by 2030

2022-11-15 01:31:17

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As Mexico stalls major solar projects, companies turn to smaller workarounds https://newsdaily.business/2022/08/23/as-mexico-stalls-major-solar-projects-companies-turn-to-smaller-workarounds/ https://newsdaily.business/2022/08/23/as-mexico-stalls-major-solar-projects-companies-turn-to-smaller-workarounds/#respond Tue, 23 Aug 2022 04:51:11 +0000 https://newsdaily.business/2022/08/23/as-mexico-stalls-major-solar-projects-companies-turn-to-smaller-workarounds/ MEXICO CITY, Aug 22 (Reuters) – With alternative energy projects stalled in Mexico due to controversial energy reforms, companies are increasingly turning to smaller-scale renewable options that allow businesses to cut carbon emissions while dodging fights with Mexican regulators. Solar companies and energy analysts said they are seeing an unprecedented surge in distributed generation (DG) […]]]>


MEXICO CITY, Aug 22 (Reuters) – With alternative energy projects stalled in Mexico due to controversial energy reforms, companies are increasingly turning to smaller-scale renewable options that allow businesses to cut carbon emissions while dodging fights with Mexican regulators.

Solar companies and energy analysts said they are seeing an unprecedented surge in distributed generation (DG) solar projects, which are smaller and less regulated with a threshold in Mexico of 500 kilowatts – enough to power about 200 households.

Bread-producer Grupo Bimbo (BIMBOA.MX) and French energy firm Engie (ENGIE.PA) are among those increasingly turning to DG. Although these projects often provide just 10% or 20% of a company’s energy needs, they are seen as the “only game in town” right now, according to Andres Friedman, chief executive of Canadian-Mexican solar startup Solfium.

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Even with the explosive growth predicted in DG, analysts doubt it will be enough for Mexico to successfully address its energy transition, given that government policies continue to prioritize fossil-fuel generated electricity.

But for many companies they are the best option, with DG projects not requiring a generation permit and taking just weeks to get approved, versus months or years for utility-scale projects. It is likely to stay that way too – at least for now – said analysts, who do not foresee changes to DG regulation in the near future.

“Companies have said, ‘that’s it, we’re going to be in control of our own destiny with distributed generation. We can do it immediately,'” said Friedman, who counts Engie, German industrial manufacturer Prettl and Legrand Group’s (LEGD.PA) BTicino as clients.

AMLO’S QUEST FOR CONTROL OF POWER SECTOR

Mexico is embroiled in tensions with the United States and Canada, its major trade partners, over President Andres Manuel Lopez Obrador’s drive to tighten state control of the energy market. The United States has demanded dispute settlement talks with Mexico, arguing the move is unfair to U.S. companies and likely in breach of a regional trade deal. read more

Lopez Obrador’s quest has infused deep uncertainty in the renewable energy sector as at least nine major projects amounting to more than 1,000 megawatts (MW) by large developers like German company BayWa (BYWGnx.DE) and Italy’s Enel (ENEI.MI) , are currently stalled as they await permitting from the state power regulator, according to Valentina Izquierdo, a Mexico-based solar analyst for Wood Mackenzie.

Spain’s Iberdrola (IBE.MC) has an already-built 100 MW wind farm that was denied its generation permit.

The vast majority of distributed generation projects in Mexico center on easy-to-install solar panels that can be used on-site, rather than large wind turbines.

“Right now in Mexico, commercial and industrial clients don’t have any other options, so that’s pushed more clients towards the DG market,” Izquierdo said.

Enlight, a Mexican solar company that focuses on DG projects for industrial customers, said it had clients that considered tapping renewable energy from larger sources, but the political climate swayed them to DG as a more proactive step towards their own ESG commitments.

“There was a lot of great growth for that type of client, for certain specific industries that have goals of very aggressive de-carbonization, such as the automotive industry,” said Oscar Garcia, chief growth officer for Enlight, which has worked with Grupo Bimbo.

Sector experts have estimated DG investments in Mexico have topped $3.5 billion in the last eight years, with another $500 million expected by the end of this year.

There are also attempts to increase the threshold for DG projects, which is lower than in countries like Brazil and Colombia, with Green Party (PVEM) lawmaker Nayeli Arlen Fernandez Cruz pushing to double the capacity to 1 MW.

Mexico’s most recent electricity development plan, for 2022 through 2036, delays by seven years the country’s previous commitment to generate 35% of its energy from renewable sources by 2024. It now says that will only be possible by 2031.

But DG still features as a major area of growth in renewable sources – forecast to reach nearly 16,500 cumulative megawatts by 2036 under the best case scenario, a nearly 725% increase. In contrast, it did not include scenarios for utility-scale solar or wind projects, a sign the government could continue holding them back.

“This allows us to interpret that few permits could be given out for renewable energy generation utility-scale projects,” said country manager Maria Jose Trevino for consultancy Acclaim Energy.

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Reporting by Cassandra Garrison; editing by Stephen Eisenhammer and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

Cassandra Garrison

Thomson Reuters

Mexico-based reporter focusing on climate change and companies with an emphasis on telecoms. Previously based in Santiago de Chile and Buenos Aires covering the Argentine debt crisis, the tussle for influence between the United States and China in Latin America and the coronavirus pandemic.



Read More:As Mexico stalls major solar projects, companies turn to smaller workarounds

2022-08-22 23:33:00

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U.S. launches dispute talks over Mexican energy policies that ‘undermine’ U.S. firms https://newsdaily.business/2022/07/20/u-s-launches-dispute-talks-over-mexican-energy-policies-that-undermine-u-s-firms/ https://newsdaily.business/2022/07/20/u-s-launches-dispute-talks-over-mexican-energy-policies-that-undermine-u-s-firms/#respond Wed, 20 Jul 2022 14:24:20 +0000 https://newsdaily.business/2022/07/20/u-s-launches-dispute-talks-over-mexican-energy-policies-that-undermine-u-s-firms/ WASHINGTON/MEXICO CITY, July 20 (Reuters) – The United States on Wednesday demanded dispute settlement talks with Mexico under a regional trade deal, charging that Mexican energy policies were discriminatory and “undermine” American firms and U.S.-produced energy. The request, announced by the U.S. Trade Representative’s office, marks the most serious trade fight between Washington and Mexico […]]]>


WASHINGTON/MEXICO CITY, July 20 (Reuters) – The United States on Wednesday demanded dispute settlement talks with Mexico under a regional trade deal, charging that Mexican energy policies were discriminatory and “undermine” American firms and U.S.-produced energy.

The request, announced by the U.S. Trade Representative’s office, marks the most serious trade fight between Washington and Mexico City since the U.S.-Mexico-Canada Agreement on trade took effect two years ago. If unresolved, it could ultimately lead to punitive U.S. tariffs.

Mexico’s Economy Ministry said in a brief statement that it was willing to reach a “mutually satisfactory solution” to the energy dispute.

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USTR said the requested consultations relate to Mexican measures that it argues disadvantage U.S. firms in favor of Mexican state-owned power utility Comision Federal de Electricidad (CFE) and oil producer Petroleos Mexicanos (Pemex) and suggested that the moves violate Mexico’s commitments under USMCA.

Mexican President Andres Manuel Lopez Obrador, a left-leaning energy nationalist, has pledged to revive Pemex and CFE, which he has said his predecessors deliberately “destroyed” to cede Mexico’s energy market to foreigners.

“We have repeatedly expressed serious concerns about a series of changes in Mexico’s energy policies and their consistency with Mexico’s commitments under the USMCA,” U.S. Trade Representative Katherine Tai said in the announcement.

The U.S. move is a blow to Mexico, and comes just a week after Lopez Obrador met U.S. President Joe Biden in Washington, and announced that U.S. firms were planning to plow billions of dollars into the Mexican energy sector.

Tai argued that policy changes undertaken by Mexico are affecting U.S. economic interests in multiple sectors and “disincentivize investment” by clean-energy suppliers and by companies that seek to purchase clean, reliable energy.

Mexico’s Supreme Court in April upheld contentious electricity legislation passed in 2021 that mandates that CFE should take priority over privately-run power providers on dispatch, or when plants come online. read more

Lopez Obrador argues his measures will benefit consumers and make Mexico more self-sufficient. The opposition says they will raise electricity costs, undermine investor confidence and violate Mexico’s clean energy commitments. read more

USTR said it was challenging amendments to Mexican legislation that prioritize distribution of CFE-generated power over cleaner sources of energy provided by private sector suppliers, such as wind and solar.

USTR said Mexico also has been “delaying, denying or failing to act” on permit applications for renewable energy facilities and to store, transload or sell fuels, making it difficult for private firms to participate — echoing complaints from Mexican business lobbies.

“We have tried to work constructively with the Mexican government to address these concerns, but, unfortunately, U.S. companies continue to face unfair treatment in Mexico,” Tai said.

TARIFFS NOT GOAL

A USTR official told reporters on a conference call that punitive tariffs were “a possibility down the line if we can’t get this resolved through other means” but the agency hoped to reopen the market to U.S. firms through consultations.

“A success is not to get tariffs,” the official said.

Ken Salazar, the U.S. Ambassador to Mexico, said in June that Mexico’s energy policies had put at risk some $30 billion in existing and planned U.S. investment projects in Mexico. read more

Under USMCA rules, if the complaint is not resolved in 75 days, USTR can request a dispute panel to review the claims.

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Reporting by Dave Graham and Anthony Esposito; additional reporting by Steve Holland in Washington; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.



Read More:U.S. launches dispute talks over Mexican energy policies that ‘undermine’ U.S. firms

2022-07-20 14:02:00

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U.S. to seek dispute settlement talks with Mexico over energy policy-sources https://newsdaily.business/2022/07/20/u-s-to-seek-dispute-settlement-talks-with-mexico-over-energy-policy-sources/ https://newsdaily.business/2022/07/20/u-s-to-seek-dispute-settlement-talks-with-mexico-over-energy-policy-sources/#respond Wed, 20 Jul 2022 08:22:57 +0000 https://newsdaily.business/2022/07/20/u-s-to-seek-dispute-settlement-talks-with-mexico-over-energy-policy-sources/ Excess natural gas is burnt, or flared, from Mexican state-owned Pemex’s Tula oil refinery, located adjacent to the Tula power plant belonging to national power company Comision Federal de Electricidad, or CFE, in Tula de Allende, north of Mexico City, Mexico June 22, 2020. REUTERS/Henry Romero/File Photo Register now for FREE unlimited access to Reuters.com […]]]>


Excess natural gas is burnt, or flared, from Mexican state-owned Pemex’s Tula oil refinery, located adjacent to the Tula power plant belonging to national power company Comision Federal de Electricidad, or CFE, in Tula de Allende, north of Mexico City, Mexico June 22, 2020. REUTERS/Henry Romero/File Photo

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MEXICO CITY, July 19 (Reuters) – The United States will request dispute settlement consultations with Mexico under a regional trade deal over what it considers discriminatory Mexican energy policies, according to two Mexican sources and a draft announcement reviewed by Reuters on Tuesday.

The consultations relate to measures taken by Mexico which the U.S. Trade Representative argues undermine American companies in Mexico and U.S.-produced energy in favor of Mexican state-owned power utility Comision Federal de Electricidad (CFE) and oil firm Petroleos Mexicanos (Pemex).

A spokesperson for USTR said it does not comment on stories sourced to content from a broken embargo. The announcement was shared by the sources in Mexico and was set to be made public on Wednesday.

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Mexican President Andres Manuel Lopez Obrador, a left-leaning energy nationalist, has pledged to revive Pemex and CFE, which he has said his predecessors deliberately “destroyed” to leave the market in the hands of foreigners.

The United States is now arguing his efforts to strengthen the state-run firms appear to contravene Mexico’s commitments under the United States-Mexico-Canada Agreement (USMCA) trade pact.

“We have repeatedly expressed serious concerns about a series of changes in Mexico’s energy policies and their consistency with Mexico’s commitments under the USMCA,” U.S. Trade Representative Katherine Tai said in the draft statement.

The U.S. move is a blow to Mexico, and comes just a week after Lopez Obrador met his American counterpart Joe Biden in Washington, and announced that U.S. firms were planning to plow billions of dollars into the Mexican energy sector.

Tai argued that policy changes undertaken by Mexico are affecting U.S. economic interests in multiple sectors and “disincentivize investment” by clean-energy suppliers and by companies that seek to purchase clean, reliable energy.

Mexico’s Supreme Court in April upheld contentious electricity legislation passed in 2021 that mandates that CFE should take priority over privately-run power providers on dispatch, or when plants come online. read more

Lopez Obrador argues his measures will benefit consumers and make Mexico more self-sufficient. The opposition says they will raise electricity costs, undermine investor confidence and violate Mexico’s clean energy commitments. read more

USTR said it was challenging amendments to Mexican legislation that prioritize distribution of CFE-generated power over cleaner sources of energy provided by private sector suppliers, such as wind and solar.

“We have tried to work constructively with the Mexican government to address these concerns, but, unfortunately, U.S. companies continue to face unfair treatment in Mexico,” Tai said in the draft announcement.

Mexico’s actions also include “delays, denials, and revocations” of U.S. companies’ abilities to operate in Mexico’s energy sector, including renewable energy projects, USTR said, echoing complaints from business lobbies in Mexico.

Under USMCA rules the United States and Mexico would enter into consultations within 30 days of the U.S. request, unless the parties decide otherwise, the draft announcement noted.

If they do not resolve the matter through consultations within 75 days of the U.S. request, the United States may request the establishment of a dispute panel.

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Reporting by Dave Graham and Anthony Esposito; additional reporting by Steve Holland in Washington D.C.; Editing by Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.



Read More:U.S. to seek dispute settlement talks with Mexico over energy policy-sources

2022-07-20 03:45:00

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Exclusive: U.S. will allow two companies to ship Venezuelan oil to Europe https://newsdaily.business/2022/06/05/exclusive-u-s-will-allow-two-companies-to-ship-venezuelan-oil-to-europe/ https://newsdaily.business/2022/06/05/exclusive-u-s-will-allow-two-companies-to-ship-venezuelan-oil-to-europe/#respond Sun, 05 Jun 2022 18:02:01 +0000 https://newsdaily.business/2022/06/05/exclusive-u-s-will-allow-two-companies-to-ship-venezuelan-oil-to-europe/ HOUSTON/WASHINGTON, June 5 (Reuters) – Italian oil company Eni SpA and Spain’s Repsol SA could begin shipping Venezuelan oil to Europe as soon as next month to make up for Russian crude, five people familiar with the matter said, resuming oil-for-debt swaps halted two years ago when Washington stepped up sanctions on Venezuela. The volume […]]]>


HOUSTON/WASHINGTON, June 5 (Reuters) – Italian oil company Eni SpA and Spain’s Repsol SA could begin shipping Venezuelan oil to Europe as soon as next month to make up for Russian crude, five people familiar with the matter said, resuming oil-for-debt swaps halted two years ago when Washington stepped up sanctions on Venezuela.

The volume of oil Eni and Repsol are expected to receive is not large, one of the people said, and any impact on global oil prices will be modest. But Washington’s greenlight to resume Venezuela’s long-frozen oil flows to Europe could provide a symbolic boost for Venezuelan President Nicolas Maduro.

The U.S. State Department gave the nod to the two companies to resume shipments in a letter, the people said. U.S. President Joe Biden’s administration hopes the Venezuelan crude can help Europe cut dependence on Russia and re-direct some of Venezuela’s cargoes from China. Coaxing Maduro into restarting political talks with Venezuela’s opposition is another aim, two of the people told Reuters.

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The two European energy companies, which have joint ventures with Venezuelan state-run oil company PDVSA, can count the crude cargoes toward unpaid debts and late dividends, the people said.

A key condition, one of the people said, was that the oil received “has to go to Europe. It cannot be resold elsewhere.”

Washington believes PDVSA will not benefit financially from these cash-free transactions, unlike Venezuela’s current oil sales to China, that person said. China has not signed onto Western sanctions on Russia, and has continued to buy Russian oil and gas despite U.S. appeals.

The authorizations came last month, but details and resale restrictions have not been reported previously.

Eni (ENI.MI) and Repsol (REP.MC) did not immediately reply to requests for comment.

OTHERS EXCLUDED

Washington has not made similar allowances for U.S. oil major Chevron Corp(CVX.N), India’s Oil and Natural Gas Corp Ltd (ONGC) (ONGC.NS) and France’s Maurel & Prom SA(MAUP.PA), which also lobbied the U.S. State Department and U.S. Treasury Department to take oil in return for billions of dollars in accumulated debts from Venezuela.

All five oil companies halted swapping oil for debt in mid-2020 in the midst of former U.S. President Donald Trump’s “maximum pressure” campaign that cut Venezuela’s oil exports but failed to oust Maduro.

PDVSA has not scheduled Eni and Repsol to take any cargoes this month, according to a June 3 preliminary PDVSA loading program seen by Reuters.

Venezuela Vice President Delcy Rodriguez tweeted last month she hoped the U.S. overtures “will pave the way for the total lifting of the illegal sanctions which affect our entire people.”

OUTREACH TO CARACAS

The Biden administration held its highest level talks with Caracas in March, and Venezuela freed two of at least 10 jailed U.S. citizens and promised to resume election talks with the opposition. Maduro has yet to agree on a date to return to the negotiating table. read more

Republican lawmakers and some of Biden’s fellow Democrats who oppose any softening of U.S. policy toward Maduro have blasted the U.S. approach to Venezuela as too one-sided.

Washington maintains further sanctions relief on Venezuela will be conditioned on progress toward democratic change as Maduro negotiates with the opposition.

Last month, the Biden administration authorized Chevron, the largest U.S. oil company still operating in Venezuela, to talk to Maduro’s government and PDVSA about future operations in Venezuela. read more

About that time, the U.S. State Department secretly sent letters to Eni and Repsol saying Washington would “not object” if they resumed oil-for-debt deals and brought the oil to Europe, one of the sources told Reuters.

The letters assured them they would face no penalties for taking Venezuelan oil cargoes to collect on pending debt, said two people in Washington.

CHEVON CONSIDERATION

Chevron’s request to the U.S. Treasury to expand its operations in Venezuela came as the State Department issued the no-objection letters to Eni and Repsol. The person familiar with the matter in Washington declined to say whether Chevron’s request remained under consideration.

The U.S. oil major did receive a six-month continuation of a license that preserves its assets and U.S. approval to talk with Venezuelan government officials about future operations. read more

It was not immediately clear if Washington had okayed the prior crude-for-fuel swaps European companies conducted with PDVSA until 2020, exchanges that provided relief to gasoline-thirsty Venezuela.

China has become the largest customer for Venezuelan oil, with as much as 70% of monthly shipments destined for its refiners. read more

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Reporting by Marianna Parraga in Houston and Matt Spetalnick in Washington; writing by Gary McWilliams; Editing by David Gregorio

Our Standards: The Thomson Reuters Trust Principles.



Read More:Exclusive: U.S. will allow two companies to ship Venezuelan oil to Europe

2022-06-05 17:52:00

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