The main domestic risks faced by the Mexican economy in terms of growth and stability are the fall in oil production and the lack of a strong fiscal adjustment, because the difference between income and expenses is large, warned Bank Of America.
The Federal Government has launched an infrastructure plan to import and transport the natural gas in Mexico. The authorities believe it would help to make a gas market based on free competition, according to a report in Expansión.
The speed and rhythm of gasoline market opening depends on the Congress and not of the Federal Competition Commission (Cofede) assured Alejandra Palacios, President of Cofede.
Magna production has had a steady decline during 2016. According to Pemex data, it was produced 279mmbpd of magna gasoline in August, which means a 20% fall compared to the same period last year. Magna gasoline is the most consumed fuel in Mexico.
Gas Natural Fenosa, the company that has been 20 years in the country and has just achieved a penetration rate of 7% among Mexican consumers, the rest are using Liquefied Petroleum Gas (LPG), according to a report in La Jornada.
In the first half of 2016, it has been imported 12,694 million liters of fuels, with a value of US$4.9B, according to data from the Ministry of Economy. In 2015, the Federal Government spent US$13.4B in fuels’ imports.
The Federal Government plans to add 10,000 km to the National Gas Pipeline System and expects to complete them in 2019.