Mexico 2018 | ENERGY & MINING | COLUMN

TBY talks to Juan Acra,President, Mexican Energy Council (COMENER), on the sector.

Juan Acra

Regarding the implementation of energy reform, how successful has it been so far?

In the past, the energy sector was limited to five major companies, one in each area, though now new players can enter. There is a need for more competition so opportunities can open up along the value chain. In the downstream, midstream, and upstream segments, we have to find the links that are missing locally in order to integrate them into our industry. In the case of energy, implementation is on the right track and there is no going back. The energy reform has commitments with 18 countries, in addition to being a constitutional reform. One of the main challenges is attracting investments; there are predictions that the current administration will need about USD200 billion in FDI, of which 70% is linked to upstream and 30% to the power industry.

How do you evaluate the need for more refineries?

We seek energy sovereignty by reducing the imports of gas, petrochemicals, refined products, and gasoline. In order to reverse these imports, we must invest in infrastructure, find strategic partners, share risk, and change the business model to make it profitable.