Page 7 - LatAmOil Week 08 2022

LatAmOil MEXICO LatAmOil

As such, the original regulation has not been in SENER more leeway than ever to cancel permits
effect for nearly a year, and the Mexican gov- at will. “The number of import permits has dra-
ernment has been obliged to follow the Second matically dropped in the last two years, which
District Court’s instructions with respect to will very likely result in more concentration of
ensuring competition among all participants the market in the hands of [the] state oil com-
in the domestic fuel market. `Under the new pany Pemex,” he declared.
decree, though, all fuel sellers will have to meet Mexico cannot cover its gasoline demand
the conditions of the December 2020 regulation without imports. Currently, it only produces
or obtain a special exemption. about 300,000 barrels per day of gasoline, equiv-
Very few companies are likely to obtain such alent to about 37.5% of demand, which stands at
an exemption, so the decree is likely to have the around 800,000 bpd. ™
effect of leaving more room for Pemex in Mex-
ico’s domestic fuel market, S&P Global Platts
commented. It quoted Diego Campa, a partner
at the Campa & Mendoza law firm in Mexico
City, as saying that the new regulation imposed
onerous regulations on privately owned fuel
importers.
“The level of information [that] compa-
nies are now required to submit is enormous,”
Campa said. Fuel importers are now in the posi-
tion of having to show that their business does
not “affect the country’s energy balance,” and
this condition is difficult to meet in practice,” he
commented.
Meanwhile, Bernardo Cortes Araujo, a part-
ner at the Cortes & Quezada law-firm in Mex-
ico City, told Platts that the new regulation gave

CAYMAN ISL ANDS
Cayman Islands power provider considers

switching from diesel fuel to natural gas

CARIBBEAN Utilities Co. (CUC), the national figure has risen from $0.076 per kWh of electric-
power provider of the Cayman Islands, is report- ity in January 2021 to $0.13 per kWh in Decem-
edly considering switching from diesel to natu- ber 2021 and had reached $0.154 per kWh as of
ral gas – more specifically, regasified LNG – as its mid-February, the news service reported.
main fuel for electricity generation. The increase reflects the upward swing in
According to a recent article from Cayman world oil prices. Between the start of 2021 and
Compass, CUC is taking this step because it the beginning of this week, West Texas Interme-
has seen the fuel cost element of its rates more diate (WTI) prices have soared from about $47
than double since the beginning of last year. The per barrel to more than $93 per barrel.

Local grid facilities handle power produced by diesel-fired plants (Photo: CUC)

Week 08 24•February•2022 www. NEWSBASE .com P7