Page 4 - LatAmOil Week 16 2021

LatAmOil COMMENTARY LatAmOil

(Image: Pemex)
AMLO’s energy agenda

moves ahead in Congress

Legislators approve measures that are likely to give Pemex more control over the downstream sector

MEXICAN President Andres Manuel Lopez rule adopted in 2014 that obligates the Energy
Obrador’s campaign to ensure that state-run Regulatory Commission (CRE) to give private
WHAT: companies continue to dominate the energy sec- companies extra advantages with respect to the
Two of the president’s tor has made several important advances over sale of fuels produced by Pemex’s refineries. The
legislative initiatives have the last two weeks. rule, known as the asymmetric regulation, is
made progress over the On April 14, members of the lower house designed to promote competition in the down-
last two weeks. of Mexico’s Congress voted 271-134, with stream sector.
eight abstentions, to approve legislation that is The first measure, which took the form of
WHY: expected to have the effect of giving the national revisions to Mexico’s oil law, has already cleared
Both of the measures oil company (NOC) Pemex more control over the Senate. On April 22, members of the upper
are in line with efforts petroleum product sales. The bill, which was chamber voted to pass it by a 65-47 margin, with
to ensure that state- submitted to lawmakers by the presidential six abstentions.
owned Pemex retains its
dominant position in the administration earlier this month, gives the The second measure, which also consisted of
oil sector. government the power to suspend the licences revisions to the oil law, has not reached the floor
of fuel sellers in the event of a threat to national of the Senate yet. However, there is every reason
WHAT NEXT: security, energy security or the Mexican econ- to believe it will pass once it comes up for a vote.
The anti-trust agency omy. It also calls for allowing Pemex to take con- Lopez Obrador’s Morena party has a majority
and Supreme Court may trol of companies whose licences are suspended. in the upper chamber, so more than half of the
challenge the bills. Then on April 21, members of the lower senators are likely to endorse his efforts to secure
house voted 301-147, with two abstentions, in Pemex’s privileges.
favour of another bill submitted by the presiden- As a result, Mexico’s oil and gas sector
tial administration. This legislation eliminates a appears to be heading for some changes.

P4 www. NEWSBASE .com Week 16 22•April•2021