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IEnova says the Energía
Costa Azul project is its
main area of focus.

IEnova comments on impact of

changes in Mexican energy laws

POLICY IENOVA, the Mexican unit of California-based be careful as to how we evaluate those changes
Sempra Energy, has expressed cautious opti- and continue to find ways to collaborate with the
mism about its prospects for expansion, despite current administration to continue developing
recent shifts in the regulatory environment. projects.”
According to Tania Ortiz Mena, the Sempra With the proper approach, Ortiz said, the
subsidiary’s CEO, it is too soon to say whether Sempra subsidiary will be able to work together
Mexican President Andres Manuel Lopez Obra- with public-sector enterprises such as the Fed-
dor’s efforts to ensure that state-run companies eral Electricity Commission (CFE), Mexico’s
dominate the domestic energy sector will affect national power provider, and Cenagas, the
IEnova in the short term. She indicated that her operator of the country’s natural gas pipeline
company would need to take a close look at the network. “We continue to believe that there will
presidential administration’s latest efforts to alter be ... space to develop new projects,” she said.
the regulatory environment before coming to Additionally, she stated that IEnova intended
any conclusions. to “work hand in hand with CFE and Cena- Company leaders
“Those provisions are very general and, of gas, particularly to try to develop new projects
course, we are always in full compliance with all together.” do expect IEnova
of our permit obligations,” Ortiz said during an IEnova has been active in the Mexican gas
earnings call last week. “I think we need to look sector for some time. It was the first privately to continue
at the secondary laws that will regulate those owned firm to win a contract for gas distribution
activities in detail to really understand what the in Mexico and has operates a gas pipeline that is playing a role
impact may be.” more than 2,900 km long in that country. Cur- in the Mexican
Meanwhile, company leaders do expect rently, it working to lay another 200 km of pipe,
IEnova to continue playing a role in the Mexi- which would bring the length of its network up natural gas
can natural gas industry over the long run, she to 3,100 km. Its midstream assets include the
said. “You need to keep your sight on the fun- Sur de Texas-Tuxpan pipeline, which pumps industry over the
damentals and on the long term [in the energy US-produced gas southward through the Gulf
sector],” she commented. “Mexico continues to of Mexico to the Mexican market. long run.
need energy infrastructure to be able to supply The company has also built an LNG import
its energy needs, and it will continue to require terminal in Costa Azul, a port in Baja Califor-
private investment to meet those needs.” nia. It plans to convert that terminal into a gas
She also indicated that IEnova wanted to liquefaction plant and export facility within the
maintain a good working relationship with the framework of the Energía Costa Azul (ECA)
presidential administration and state-owned project. Last week, Ortiz described ECA as IEn-
companies. “We are going through some impor- ova’s “main area of focus” and said she “[contin-
tant changes in the regulatory and legal frame- ued] to see opportunity for expansion to feed
work [in] the sector,” she said. “So we need to new off-takers along our natural gas pipelines.”™

Week 18 07•May•2021 www. NEWSBASE .com P9