Auction

Mexico not only aims to conclude its Round 2 upstream auctions with one covering nonconventional sources, but energy officials now are eyeing a Round 3 that also would include one covering shale and tight resources before the end of 2018, according to the energy secretary.

Mexico plans to offer 30 blocks for deepwater exploration in the fourth auction of the Round 2 series in what one analyst said was “an all-out effort” by the nation’s energy authorities to follow up on recent upstream auction successes as part of the 2013 energy reform.

Producers that have been awarded blocks in Mexico’s historic oil and natural gas upstream auctions should not rest on their laurels, said Talos Energy LLC CEO Tim Duncan.

Mexico has rescheduled a natural gas capacity auction on its import pipeline network for August, after failing to draw any bids on Monday.

Mexico’s initial upstream auctions, including round 2.1 held in mid-June, earned billions for the country in the first upstream auctions, but to date, natural gas has played only a minor role. That may change with two auctions scheduled in July, with gas potentially breaking out as a star performer.

Ten of the 15 shallow-water blocks on offer in the first auction of round two of Mexico’s 2013-2014 energy reform were snapped up Tuesday in what at times was fierce bidding.

PJM Interconnection released the results Tuesday of its capacity auction for the 2020-2021 period, with natural gas combined-cycle plants accounting for most of the new generation cleared at 2,350 MW.

As Mexico proceeds with upstream and midstream natural gas reform, demand for gas continues growing and domestic supply can’t keep up. The market opening is a work in progress.

Never far from controversy or criticism during its four-year history, California’s market-based, multi-billion-dollar cap-and-trade auction was upheld on a 2-1 vote of a state appellate court in Sacramento on Thursday.