Energy

Given that around 50.3% of the National Infrastructure Plan (NIP) 2014-2018 budget (US$299 billion) is allocated to 262 projects within the energy sector, of which approximately 7.7% is given to CFE and 42.6% to PEMEX, energy could lead the growth of the Mexican infrastructure sector. According to EY, the decline in Mexican oil production can greatly be attributed to the lack of investment and technology. With the Energy Reform implemented, and the NIP outlining countermeasures to the above-named problems, the way has been paved for investment in midstream capacity development.

In addition to having a fragmented oil and natural gas transportation and storage network, the sector faces a number of other challenges, such as the lack of stable access to high-quality energy due to factors such as aging infrastructure, a lack of developed infrastructure for hydrocarbon exploration and extraction, as well as underdeveloped electricity transmission and distribution facilities. Developing appropriate infrastructure to counter these problems present significant untapped opportunities.

This chapter includes expert insights into major energy infrastructure projects, presented through interviews with the leaders of EPC companies active in traditional and renewable energy projects, as well as perspectives from PEMEX, CFE, and regulating authorities of the energy sector. It discusses opportunities created by the Energy Reform and features insights by multinational corporations looking to participate in the development of energy infrastructure in Mexico.

HIGHLIGHTS OF CHAPTER 10

  • Major infrastructural projects stemming from the Energy Reform
  • Increased focus on development of adequate natural gas transport systems
  • Government role vs. private sector role in hydrocarbon sector developments
  • Combined cycle technologies in thermoelectric generation assets
  • NPI goals for renewable energy generation infrastructure