Discussions on potential players in a privatized Mexican energy market
Cerro Prieto geothermal plant (source: Government of Baja California, creative commons)
Alexander Richter
31 Mar 2014
The privatization of the energy and petroleum market in Mexico, will mean large changes and likely the entry of new players that could drive forward geothermal development in the country.
Following presidential elections in 2012, there are now far reaching legislative changes on the agenda. Reported before, Mexico is already planning a partly opening of its energy market to private sector players.
With talks on necessary infrastructure investments for PEMEX, Mexican Petroleums, Mexico’s state owned petroleum company of around $60 billion annually, there are several companies named as players in a privatized Mexican energy market.
The strong rule of PRI, the predominant political power until the elections in 2000 in Mexico, allowed the creation of strong conglomerates in various industries in the country, e.g. in telecommunications, dairy, bread, cement etc.
In 2012, the PRI regained power and there are now fears that similar monopolies could be formed in a privatization of the energy and petroleum market. The privatization of the petroleum market has now passed congress and has set a privatization schedule until the end of 2015.
There are now fears that a privatization of PEMEX could move the market from a state monopoly to that of a private players. But simply the financial stake on investment needs in the billions of U.S. dollars, will likely see several players entering the market.
These include mining and infrastructure companies, but also geothermal exploration and drilling services company Constructora y Perforadora Latina (CP Latina).
So in the context of geothermal it is interesting to see who will be the player targeting the potentially growing geothermal development in Mexico.
Source: ABQ Journal
