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PBS & NPR: Mexico Infrastructure Projects Will Open Up Energy Sector

07 July, 2015

Foreign oil and gas companies are eager to gain a foothold in Mexico’s oil and gas industry,which was closed to outsiders from 1938 until historic legislation changed everything in late 2013 by opening the sector up to the rest of the world. Critical to this effort,however,is the development of new infrastructure projects to support new exploration and energy production in Mexico,which means building new pipelines and improving highways.

Pipelines
“In the last 12 months,there’s been a five-fold increase in pipeline capacity joining the U.S. and Mexico,” writes K-PBS in San Diego,California. “The main lobbying group for the natural gas industry,America’s Natural Gas Alliance,says the pipeline activity is all tied to Mexico’s energy reform.”

But the latest flurry of activity that involves building new pipelines between the U.S. and Mexico is just part of a larger infrastructure development plan that will make improvements nationwide to support the coming boom in Mexico’s energy production.

“U.S. energy producers are eyeing their potential in a greatly expanded market,” writes K-PBS. “The projected expansion of Mexico’s domestic energy sector far exceeds what Mexico can currently generate.”

In fact,Mexican officials hope to use the new infrastructure to reconfigure the nation’s border economy. To support this effort,Mexico has already drilled more than 24 new exploratory wells in the northern regions of the country,including sites on a 1,500-acre parcel about an hour south of the Rio Grande in the state of Chihuahua,which is being considered as a possible location for a series of five new natural gas pipelines.

Highway Development
Also of note,NPR affiliate K-JZZ in Temepe,Ariz.,reported this week that Mexico will make substantial improvements to its highway route between Central Mexico and the northern town of Nogales,which spans both sides of the U.S.-Mexico border and lies about an hour south of Tuscon,Ariz.

According to the report,Mexican officials agreed to invest $1 billion in highway improvements that will smooth the transportation of goods along Route 15,which leads from the southern reaches of Mexico’s Pacific coast,all the way northward through Hermonsillo to Nogales.

“It is expediting the shipment of goods from Central Mexico into the U.S. and helping our goods move more easily into Central Mexico and the ports,” shared Tim Tate of the Arizona Department of Transportation. “This is a major step forward for transportation of goods to and from Mexico.”

Investment Opportunities
Finally,the Globe and Mail reported Oct. 15 that Caisse de depot et placement du Québec,which is Canada’s second-largest pension fund,has announced plans to unveil an enormous Mexico infrastructure fund in the very near future,although the deal has not yet been made officially public.

“Caisse is set to make a big foray into Mexico following an initial $100 million investment in real estate,” writes the Globe and Mail. “The Quebec fund is poised to soon unveil a large infrastructure-related investment in the Latin American country.”

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