Proposed legislation in Mexico to favor state utility Comisión Federal de Electricidad (CFE) in the electricity dispatch order should not be viewed as bullish for the natural gas market, despite CFE’s plans to add more gas-fired capacity over the coming years, according to local energy consultant David Rosales. 

Mexico installed capacity

The bill supported by President Andrés Manuel López Obrador may offer a short-term lifeline to CFE, Rosales told NGI’s Christopher Lenton, senior editor for Mexico and Latin America, in the latest episode of NGI’s Hub & Flow Podcast.

However, “I don’t think it would be good for the company, not only in the long-term but in the medium-term,” he said, adding, “and I don’t think it would be good for the natural gas market whatsoever.”

Even if CFE...