Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive: Mexican private sector pitches $92 billion in energy investment - document

Stock MarketsMar 04, 2020 10:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Dave Graham

MEXICO CITY (Reuters) - Mexico's private sector has drawn up a broad package of proposed energy investments for the government worth almost $92 billion, according to a document seen by Reuters on Wednesday, providing a potential lift to the country's misfiring economy.

With 275 projects from 2020 to 2024 encompassing everything from power generation, storage and transportation to exploration and production of natural gas, the 1.787 trillion peso ($91.5 billion) package could significantly influence the government's national energy plan, which is due to be presented soon.

The projects sketched out were the product of discussions between Mexico's business coordinating council (CCE) and dozens of energy companies, including Royal Dutch Shell PLC (L:RDSa), Mexico's IEnova (MX:IENOVA), a unit of U.S. firm Sempra Energy (N:SRE), France's Engie SA (PA:ENGIE) and Italy's Enel SpA (MI:ENEI), the document showed.

Under President Andres Manuel Lopez Obrador, Mexico has pursued a more statist approach to the energy sector, but some members of his administration believe attracting more private capital is vital for lifting growth.

CCE President Carlos Salazar and Antonio del Valle, head of the Mexican Business Council (CMN), submitted the investment plan on Monday to Alfonso Romo, chief of staff to Lopez Obrador, according to a person familiar with the matter.

Energy Minister Rocio Nahle told Reuters she would be analyzing the private sector plan with Lopez Obrador in the coming days. The projects are due to be privately funded.

A CCE spokesman said a range of energy projects and potential investment amounts were still under discussion.

Romo's office did not immediately respond to a request for comment. A CMN spokesman had no comment.

A source at IEnova said the company had "actively" worked with the CCE to compile feasible projects. Shell, Enel and Engie did not immediately respond to requests for comment.

Romo told a news conference on Tuesday the government was reviewing which projects would be part of the energy plan, and said Mexico needed to do more to encourage growth.

"Energy is becoming a big opportunity to send a message not just to the energy sector, but also to other sectors that are welcome here, to everyone who wants to invest," Romo said.

Dragged down by tepid investment and concern over the government's economic policies, the economy slipped into a mild recession last year, undermining support for Lopez Obrador, who pledged to speed up growth when he took office in December 2018.

How much of the CCE energy blueprint could be adopted is unclear due to differences of opinion over energy policy.

Lopez Obrador, Nahle and Manuel Bartlett, head of state power utility CFE, are advocates of a stronger role for the state. Others, including Romo, want the government to open up the sector to more private capital to boost jobs and growth, an argument also made by Mexico's business leaders.

The private sector energy pitch foresees the creation of well over 400,000 direct and indirect jobs. Under the proposals, the bulk of the work on the projects should be front-loaded into the early years of the 2020-2024 time frame.

Three of the states with the biggest concentration of proposed energy projects were Veracruz, Oaxaca and Yucatan, poorer regions in the south and east of the country that the president has pledged to transform economically.

($1 = 19.5218 Mexican pesos)

Exclusive: Mexican private sector pitches $92 billion in energy investment - document
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Jon Benton
Jon Benton Mar 04, 2020 11:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That Wall must have gotten them mad?!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email