APLA '12: Mexico's new president has chance to reform energy

10 November 2012 23:46  [Source: ICIS news]

RIO DE JANEIRO (ICIS)--The recently elected president of Mexico, Enrique Pena Nieto, has a chance of reforming Mexico's energy laws, which could provide private companies a greater role in the nation's energy production, the chief executive of Grupo Idesa said on Saturday.

Currently, state energy producer Pemex has a monopoly.

However, Pena Nieto made reforming the nation's energy laws a priority during his presidential campaign, said Jose Luis Uriegas, the chief executive of Grupo Idesa, a Mexico-based chemical producer. Uriegas made his comments on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.

Under any reform, Mexico would remain the owner of the nation's hydrocarbons, Uriegas said. However, reforms would create a framework that would allow more private participation, including shared benefits from increased energy production.

This would incentivise foreign players to provide technology and funds to develop hydrocarbon reserves in Mexico, he noted.

"I see him very committed to energy. He will put a lot of political capital into energy reform," Uriegas said.

Such reforms could receive cooperation from Mexico's two major political parties, the Partido Revolucionario Institucional (PRI) and the Partido Accion Nacional (PAN), Uriegas said. "If they work together, they will have enough votes for reform."

The APLA conference ends on Tuesday

Additional reporting by Joseph Chang

By: Al Greenwood
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