pemex

Energy reforms by the Mexican government are good news for the state-owned petroleum company Petroleos Mexicanos (Pemex) and electric utility Comision Federal de Electricidad (CFE), but the benefits won’t not be immediate and CFE may face challenges from increased competition, according to analysts with Fitch Ratings.

Mexico’s Congress on Thursday gave final approval to reforms that would open the country’s energy industry to foreign investment after 75 years of monopoly control by state-owned Petroleos Mexicanos (Pemex). Outside money, talent and expertise are seen as vital to exploiting the country’s vast oil and natural gas reserves and stemming oil production declines.

After 70 years as a Mexican government-owned monopoly, Petroleos Mexicanos (Pemex) may be ready to accept allowing energy investors in, Raymond James & Associates Inc. analysts said in a report.

With or without proposed federal energy reforms, Mexico holds increased prospects and challenges for San Diego-based Sempra Energy, which is eyeing more pipeline work, expansion into natural gas liquids (NGL) and the hurdle of increased taxes by the Mexican federal government.

Mexico national oil/natural gas company Petroleos Mexicanos (Pemex) said that an out-of-control gas-fed oil well fire about 5,000 meters below the surface may take up to eight weeks to put out.

Houston Pipe Line Co. LP (HPL) has filed an application seeking FERC authorization to build border-crossing facilities at the international border between the United States and Mexico to export and/or import natural gas between the two nations.

Mexico’s federal government-dominated energy sector continues to be the focus of reform talk by the country’s presidential administration, with disclosures by the new CEO at Petroleos Mexicanos (Pemex) that he will form a new company within the state-operated oil and natural gas giant specifically to go after shale and deep water Gulf of Mexico (GOM) supplies outside of Mexico.

In a nation where citizens’ national identity is tied to the state-owned oil and natural gas industry, and past high-profile efforts to inject more global private-sector investment have withered, Mexican President Enrique Pena Nieto on Monday proposed opening the nation to more shared private-sector energy investment.

While imports of liquefied natural gas (LNG) into the U.S. in 2004 were nearly three times the volume received five years ago, pipeline imports of Canadian gas continued to be the greatest supply source to meet domestic demand, according to a new report released by the Energy Information Administration (EIA) Wednesday. However, the EIA indicated that LNG, which is growing at a faster clip, could overtake Canadian supplies as the main source of imports in the years ahead.