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REGIONAL REPORTMEXICO & CENTRAL AMERICA


In many Central American and the Caribbean locations there is a lack of investment in new infrastructure, as well as a severe lack of maintenance of existing networks and facilities.


USMCA, President Trump said. Gantier is keen to emphasise that “the


complex infrastructure and governmental decisions/opportunities can be a challenge for anyone interested in the Mexico and Central America area, where there is room to increase efficiency and have solid government-led engagement from the beginning of any infrastructure project”.


Price competition Other potential challenges include price competition and local community opposition to potential new energy projects. For instance, there is anger at President


Andrés Manuel López Obrador’s efforts to push for the completion of a thermal power plant and gas pipeline in Huexca in the Morelos region – despite having opposed the plant before he came into office. Local press reports suggest a degree of cynicism regarding the outcome of a public consultation that approved the continuation of the plant. According to Latin America intelligence


tool BN Americas, the facility is part of a larger, multimillion-dollar initiative called the Proyecto Integral Morelos (PIM), which includes another thermoelectric plant, a 10 km water pipeline and a 20 km transmission line, as well as the 150 km natural gas pipeline. Its aim is “to diversify the country’s energy sources while providing greater energy efficiency and sustainability to the metropolitan area”, BN


DHL unloading wind turbine blades at Veracruz.


Pemex aims for 50 percent increase in gas production


Mexico’s national oil company Pemex plans to ramp up natural gas production by 50 percent in the next six years to reach 5.7 billion cu ft per day by the end of 2024. Speaking at the end of last year alongside Mexico’s


president Andrés Manuel López Obrador, Pemex’s ceo Octavio Romero Oropeza said the company also intends to boost crude oil production to 2.4 million barrels per day (bpd) from 1.75 million bpd in the same time frame. It will focus on upstream investment at shallow


water and onshore conventional fields in the southeastern states of Veracruz, Tabasco and


Americas said. Opposition is based on environmental


concerns as well as Huexca’s connection with revolutionary leader Emiliano Zapata, who was assassinated there a century ago. Among other concerns, residents resent the prospect of the region’s resources being diverted for the project – for instance, water that could be used for irrigation.


Campeche, as well as onshore conventional fields in northern Mexico. The investments will be allocated towards drilling,


repairing wells at existing fields, enhanced recovery techniques in mature fields, and “the opportune development of new fields discovered with the new exploration strategy”, according to Oropeza. He did not provide oil and gas production forecasts


from the 110 contracts awarded through bid rounds between 2015 and 2018. However, he confirmed that the rounds, and the 2013 constitutional energy reform that made them possible, have so far failed to live up to promises of investment and production growth.


Perhaps the most significant challenge for


moving project cargo in the wider region relates to infrastructure. Heavy lift transport in Central America and the Caribbean is completely dependent on road transport, as there are no inland waterways and rail is practically non-existent. Furthermore, in many locations there is a lack of investment in new infrastructure, as


/transtellsadecv www.heavyliftpfi.com


@transtell01


www.transtell.com.mx May/June 2019 53


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