- Mexico’s private sector has developed a broad range of energy investments worth around $92 billion
- The country plans to work on 275 new projects between 2020 and 2024
- Several energy companies will work on the projects, including Royal Dutch Shell PLC, Mexico’s IEnova, a division of U.S. firm Sempra Energy, France’s Engie SA, and Italy’s Enel SpA
Mexico’s business sector has prepared a wide range of energy investments for the government, worth nearly $92 billion, as part of the plan to help the country’s declining economy to recover.
According to the document examined by Reuters, over the 2020-2024 period Mexico will be working on 275 projects. The projects will cover power generation, storage, transportation, and natural gas production. The package, worth around 1.787 trillion pesos ($91.5 billion) could greatly boost Mexico’s national energy plan, which should be published soon.
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The plan for projects came after the country’s business coordinating council (CCE) held discussions with various energy companies, such as Royal Dutch Shell PLC, Mexico’s IEnova, a unit of U.S. firm Sempra Energy, France’s Engie SA and Italy’s Enel SpA, according to the document.
The government aimed to gain more control over the energy sector under President Andres Manuel Lopez Obrador, however, some people in his administration think bringing more private capital is essential for stimulating growth.
President of the CCE Carlos Salazar, and chief of the Mexican Business Council Antonio del Valle presented the investment scheme on March 2 to Alfonso Romo, Lopez Obrador’s Chief of Staff Designate.
At a press conference on Tuesday, Romo said the government was examining the projects to decide which ones could be a part of the energy plan and said the country needed to do better to stimulate growth.
“Energy is becoming a big opportunity to send a message not just to the energy sector, but also to other sectors that are welcome here, to everyone who wants to invest,” he said.
Minister of energy Rocio Nahle said she will review the private sector plan with the president over the next few days. It is expected that the projects will be privately funded.
Still, several energy projects and possible investment sums were still in question, said a CCE representative. According to a person close to IEnova the company had “actively” collaborated with the CCE to discuss potential projects.