Page 6 - LatAmOil Week 18 2021

LatAmOil MEXICO LatAmOil

IEnova sees ECA as a high-priority project (Photo: Sempra Energy)

IEnova CEO comments on impact of

changes in Mexican energy laws

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 to
any conclusions. “work hand in hand with CFE and Cenagas, par-
“Those provisions are very general and, of ticularly to try to develop new projects together.”
course, we are always in full compliance with all IEnova has been active in the Mexican gas
of our permit obligations,” Ortiz said during an sector for some time. It was the first privately
earnings call last week. “I think we need to look owned firm to win a contract for gas distribution
at the secondary laws that will regulate those in Mexico and has operates a gas pipeline that is
activities in detail to really understand what the more than 2,900 km long in that country. Cur-
impact may be.” rently, it working to lay another 200 km of pipe,
Meanwhile, company leaders do expect which would bring the length of its network up
IEnova to continue playing a role in the Mexi- to 3,100 km. Its midstream assets include the
can natural gas industry over the long run, she Sur de Texas-Tuxpan pipeline, which pumps
said. “You need to keep your sight on the fun- US-produced gas southward through the Gulf
damentals and on the long term [in the energy of Mexico to the Mexican market.
sector],” she commented. “Mexico continues to The company has also built an LNG import
need energy infrastructure to be able to supply terminal in Costa Azul, a port in Baja Califor-
its energy needs, and it will continue to require nia. It plans to convert that terminal into a gas
private investment to meet those needs.” liquefaction plant and export facility within the
She also indicated that IEnova wanted to framework of the Energía Costa Azul (ECA)
maintain a good working relationship with the project.
presidential administration and state-owned Last week, Ortiz described ECA as IEnova’s
companies. “We are going through some impor- “main area of focus” and said she “[continued]
tant changes in the regulatory and legal frame- to see opportunity for expansion to feed new
work [in] the sector,” she said. “So we need to off-takers along our natural gas pipelines.” ™

P6 www. NEWSBASE .com Week 18 06•May•2021