Mexico’s Comision Reguladora de Energia has a new chairman thisweek, after President Vicente Fox appointed Dionisio P‚rez-J comeFriscione to a five-year term. P‚rez-J come had headed the EnergyMinistry’s Investment Promotion Unit and had also served in theministry as executive director for Public Non-basic PetrochemicalCompanies.

In his previous positions, P‚rez-J come was responsible for thedesign of mechanisms to foster private participation in energyindustries, facilitate projects aimed at strengthening the energysector and serving as a mediator between private investors andpublic agencies.

P‚rez-J come has been involved in increasing investment in Mexico’senergy sector, and he will be facing a similar agenda as he assumesthe CRE chair. In November, CRE released a report warning that if newnatural gas production did not come on-stream in Mexico in the nexttwo to three years, the country would have to import more than half ofits gas needs (see Daily GPI, Dec. 1). The country now imports about 7% of its gas, mostly fromSouth Texas.

The CRE, which is responsible for power generation, forecaststhat electric power demand in Mexico will grow at an annual rate of6% in the next 10 years, which will require an annual investment ofUS$5 billion. However, the existing infrastructure will only lastuntil 2004, CRE warns, and new investments are necessary to installmore generating capacity and modernize transmission anddistribution grids.

At the same time, natural gas demand will grow annually at arate of 9% in the next 10 years, requiring an investment of US$2billion per year to finance exploration and production programs,and add storage and distribution facilities.

P‚rez-J come , who holds a masters degree in public policy fromHarvard University’s John F. Kennedy School of Government, is nostranger to international politics. Before working with the EnergyMinistry, he participated in the free trade agreement negotiationswith Canada and the United States, and was in charge of economicaffairs at the U.S.-Mexico Chamber of Commerce. He also has workedin the private sector as a consultant.

Four incumbent CRE commissioners will serve under P‚rez-J comeuntil their terms expire, according to CRE. They are JavierEstrada, Rub‚n Flores, Ra£l Monteforte and Ra£l Nocedal.

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