Page 7 - LatAmOil Week 19 2021

LatAmOil MEXICO LatAmOil

The API argued in its letter – which was sent “Moreover, CRE also requests additional infor-
to Secretary of State Antony Blinken, Secre- mation to issue the permits that is not required
tary of Energy Jennifer Granholm, Secretary in the regulations, until the point of denying
of Commerce Gina Raimondo and US Trade such permits to the companies, after several
Representative Katherine Tai – that the amend- delays.”
ments to these laws were causing investors to Likewise, he wrote, the Consumer Protection
lose confidence in Mexico. It also alleged that Bureau, known as PROFECO, often enforces
Mexico City’s actions contravened the US-Mex- regulations in an idiosyncratic fashion. For
ico-Canada Agreement (USMCA), which took example, he said, PROFECO typically exempts
effect last year, replacing the North American Pemex’s downstream units from compliance
Free Trade Agreement (NAFTA). with emissions standards upon request, while
“The common denominator of both laws is insisting that US-based filling station operators
to hinder new private investment in the energy (some of which are members of API) meet every
sector as well as destroy the value of already requirement.
operating private assets in violation of Mexi- These bureaucratic actions may also violate
co’s commitments under USMCA,” the group’s the provisions of USMCA, he added.
CEO, Mike Sommers, wrote. As of press time, the Mexican government
He requested that Tai address these matters at had not responded publicly to the API’s let-
an upcoming meeting with Mexican Economy ter. Mexico City has yet to begin enforcing the
Minister Tatiana Clouthier, saying that “these amendments referenced in that document,
violations” of the trade deal ought to be a top as they face legal challenges. The country’s
priority. Supreme Court is examining the new laws to
Sommers also drew attention to the obstacles determine whether they are in line with the
that US companies faced in Mexico with respect Mexican constitution, and on May 7 it granted a
to obtaining permits. For example, Mexico’s provisional suspension of the amendment to the
Energy Regulatory Commission (CRE) often Hydrocarbons Law. It took this step in response
“prolongs administrative processes for permits to the filing of a lawsuit by five privately owned
to transfer legal ownership that are by regulation oil companies working in Mexico’s oil and gas
required to be granted within 90 days,” he said. sector. ™

COLOMBIA
Protests roil Colombian LPG market

CIVIL unrest in Colombia is reportedly disrupt-
ing deliveries of LPG to the domestic market.
According to Argus Media, shortages have
emerged in some part of the country because
roadblocks set up by protesters have prevented
tanker trucks from reaching refineries and other
distribution centres. As a result, these facilities
have not been able to send LPG to customers in
the usual quantities.
Colombia usually consumes about 2,630
tonnes per day (tpd) of LPG. But as of earlier
this week, Argus said, refineries and distribution
centres were only able to load about 1,830 tpd. Trucks have had a difficult time reaching the Cartagena refinery (Photo: McDermott)
It noted that most of the shortfall had fallen
on Gasnova, a group of distributors that cover national oil company (NOC) Ecopetrol, the
around 76% of the country’s total consumption. group explained.
Gasnova – which represents Chilco, Empresas It indicated that this situation was driv-
Gasco, Montagas, Norgas, Rayogas and Super- ing some of the fuel shortages that have been
gas de Nariño – is currently handling about reported in the municipalities of Zipaquirá,
1,200 tpd of LPG, down from the usual volume Útica, Sopó, Mosquera Gachancipá and Facat-
of 2,000 tpd, it said. ativá in the central Cundinamarca department.
According to Gasnova, distributors that The roadblocks and protests have not cut
serve markets in the central part of the coun- off all shipments. Agremgas, another group of
try and the Caribbean coastal departments are Colombian distributors, informed Argus that
floundering because of a major roadblock near its tankers had been able to load up with fuel at
Mamonal. This jam has prevented trucks from Ecopetrol’s Cusiana LPG plant following nego-
reaching the Cartagena refinery, owned by the tiations with demonstrators.

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