Mexico`s New Energy Industry

Mexico’s
New Energy
Industry
Secretary of Energy
June 20th, 2016
#EnergiaMX
THROUGHOUT THE VALUE CHAIN
OIL&GAS INVESTMENT OPPORTUNITIES
DOWNSTREAM
PETROCHEMICALS
PRODUCTION
MIDSTREAM
DISTRIBUTION AND
UPSTREAM
EXPLORATION AND
PRODUCTION OF
HYDROCARBONS
EXPANSION OF THE GAS
PIPELINE NETWORK
STORAGE NETWORKS FOR
GASOLINE AND DIESEL
LIQUEFACTION AND
REFINING:
COMPRESSION TERMINALS
AND REGASIFICATION OF
NATURAL GAS TERMINALS
GASOLINE AND DIESEL
PRODUCTION
COGENERATION PROJECTS
IN REFINERIES AND GAS
PROCESSING CENTERS
NATURAL GAS AND LP GAS
COMMERCIALIZATION
RETAIL:
GASOLINE AND DIESEL
2
INVESTING IN MEXICO:
UPSTREAM
• Open
participation
in
exploration and production
activities through bidding
rounds organized by the
State.
• Competitive and flexible
contract models, based on
international best practices.
• Greater
certainty
for
investors
through
an
Exploration and Extraction
Five Year Plan.*
*Available at: http://www.gob.mx/sener/acciones-y-programas/plan-quinquenal-de-licitaciones-para-la-exploracion-y-extraccion-dehidrocarburos-2015-2019-7652
3
ROUND ONE
1. 1
1. 2
1. 3
Exploration in
Shallow Waters
Extraction in Shallow
Waters
Extraction in Onshore
Fields
2
Contracts awarded
3
Contracts awarded
25
Contracts awarded
4
INVESTING IN MEXICO:
ROUND ONE
30
CONTRACTS
AWARDED*
3
28
BIDS
NEW COMPANIES OF
FOR
7 COUNTRIES
HYDROCARBONS
18
MEXICAN
COMPANIES
* 24 SIGNED
AWARDED: 69%
(33 OF 48 BLOCKS)
MORE THAN 70% OF
INCOME FOR THE
STATE
CONTRACTS
7 BILLION USD
OF INVESTMENT
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Exploration in Deep Water
• License Contract
ROUND ONE
FOURTH BID
• 10 exploration areas
• 24 000 km²
• Depth range: 500 -3,600 m
• Resources: super light, light and heavy
oil, gas and wet gas
• Prospective resources: 10, 889 Mmboe*.
• 26 companies began qualification
process.
• Awarding date: December 5th
Mexico’s new contracting model is designed to balance risks, attract
investment and access to technology.
*Mmboe: Million Barrels of Oil Equivalent
6
EXPANSION OF THE
GAS PIPELINE NETWORK
Increase natural gas
based power
generation
(cheaper and cleaner)
Meet natural gas
industrial demand in
the country
7
NATURAL GAS INVESTMENT
OPPORTUNITIES
Source: Pemex Institutional Database, 1997-2015; Energy Information System, SIE, 2016.
MMcf: Million cubic feet
8
EXPANSION OF THE
GAS PIPELINE NETWORK (2012-2019)
Mexicali
Operational Gas Pipelines to 2012
Los Algodones I y II
Operational Gas Pipelines to 2016
Nogales
“Sásabe-Pto. Libertad”
Naco Agua Prieta
Sásabe
Sásabe
In development Pipelines
Cd. Juárez / El
Hueco
Pipelines Projects
San Isidro
“Tarahumara”
Samalayuca San“San Isidro-Samalayuca”
Isidro
Ojinaga
“Samalayuca-Sásabe”
Acuña
Ojinaga
Pto.
Libertad
“Ojinaga-El Encino”
“El Encino-Topolobampo”
“Pto. Libertad-Guaymas” Guaymas
“Guaymas-EL Oro”
El
Encino
LNG Regasification Centers
Petrochemical Facilities
Gas Processing Centers
Piedras
Negras
“El Encino-Laguna”
Colombia
El Oro
Topolobampo
Gas Interconection before 2012
Gas Interconection after 2012
Cd. Mier
Reynosa / Argüelles
“NET Mexico”
Escobedo
La
Laguna
Camar Río Bravo
Los
Ramones
“El Oro-Mazatlán”
go
Matamoros
Durango “La Laguna- Ags.”
“Matamoros-Tuxpan”
“Los Ramones”
Mazatlán
“Zacatecas”
Zacatecas
“Villa de Reyes-Ags-Guadalajara”
Guadalajara
Additional
10, 000 KM
Altamira
Naranjos
S.L.P.
Ags
V. Reyes Tamazunch
.
ale “Tamazunchale-El Sauz”
Tuxpa
Apaseo el
n
Tul
Alto
Pedro
“Tuxpan-Tula”
Nativit
a
Escobedo
as
“Morelos”
Mérida
Cancún
Huexca
Estimated Investment:
16 billion USD
Jáltipa
n
Lázaro
Cárdenas
Acapulco
Salina
Cruz
FIVE YEAR PLAN Available in Spanish at:
http://www.gob.mx/sener/acciones-y-programas/plan-quinquenal-de-gas-natural-2015-2019
MMcf: Million of cubic feet
Cd.
Nvo. Pemex
Pemex
“Ampliación Mayakán”
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Tapachula
INVESTING IN MEXICO:
MID, DOWNSTREAM AND OIL PRODUCTS
Low oil prices improve refining margins and present opportunities to
invest in the expansion of Mexico’s midstream and downstream
infrastructure to satisfy domestic demand and take advantage of regional
opportunities in the North American market.
10
INVESTING IN MEXICO:
MIDSTREAM AND OIL PRODUCTS
Oil Refineries
Storage and Distribution Centers (TAR) to 2012
Storage and Distribution Centers (TAR) to 2016
Pipelines to 2012
Pipelines to 2016
Railway Infrastructure for Petroleum Products
Maritime Terminals
Terrestrial Imports
Maritime Imports
“Topolobampo-Culiacán”
The variety of North American
crudes allows for the
optimization of existing
regional refining
infrastructure to fulfill the
current and growing demand for
fuels and other oil derived
products.
“Minatitlán-Villa Hermosa”
“Pajaritos-Salina Cruz”
TAR Pto. Chiapas
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DOWNSTREAM INVESTMENT
OPPORTUNITIES
Mexico’s dependency on imports has grown over the past decade, aiming to revert
this tendency, the Energy Reform provides a legal framework for companies to
participate throughout the value chain.
Source: Pemex Institutional Database, 1997-2015; Energy Information System, SIE, 2016.
Mbd: Million barrels per day
12

GRADUAL MARKET LIBERALIZATION:
GASOLINE AND DIESEL
Transition to market prices for gasoline and diesel retail
 Pemex product offering and other suppliers
2017
2015
Maximum prices for gasoline and diesel, adjusted
according to expected inflation.*
• Magna Gasoline: $13.16/l
• Premium Gasoline: $13.95/l
• Diesel: $13.77/l
2018
Free prices
based on
market
conditions
Public retail: Pemex and other brands
2016 onwards
Imports: Exclusive by Pemex
Until March 31, 2016
Free imports
From April 1, 2016
SENER HAS AUTHORIZED 64 PERMITS FOR GASOLINE AND 96 FOR DIESEL**
* Fiscal and Federal Income Law 2016.
** Up to June 10th 2016
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INVESTMENT OPPORTUNITIES
IN ELECTRICITY
SPOT
MARKET
POWER
GENERATION
NEW
TRANSMISSION
LINES
TRADING OF:
 ENERGY
INFRASTRUCTURE
 CAPACITY
COLLABORATE WITH
CFE IN
DEVELOPING
TRANSMISSION AND
DISTRIBUTION LINES
 CLEAN ENERGY
CERTIFICATES (CECS)
 TRANSMISSION RIGHTS
AUCTIONS
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NEW ELECTRICITY MODEL
POWER GENERATION
Short Term
Transactions
Subsidiary
“A”
Subsidiary
“B”
ELECTRIC
MARKET
ELECTRIC MARKET
CENACE
Independent
System
Operator
RETAILIN
RETAILING
G
CONSUPTI
CONSUMPTION
ON
Unregulated
Supply
Qualified Users
Spot Market
Basic Service
Users
Subsidiary
“C”
Private
Parties
Long Term
Contracts
Auctions
and Contracts
Regulated
Supply
and Contracts
CFE
legal
division
Transmission
Distribution
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INVESTMENT IN POWER GENERATION
AND TRANSMISSION LINES
2016-2030
New Power Generation Capacity,
2016-2030
100
80
57 MW
new
capacity
GW
60
• Additional 57 Gigawatts
• 28, 000 Km of transmission lines
• 400 new power plants (63% of
which is clean energy)
• $131 billion dollar investment
→ 75% power generation
($98 billion)
40
Competitive
CFE
20
CFE PPAs
0
Existing
Retired
New
Private
→ 13% for power distribution
($17 billion)
→ 12% for transmission lines
($16 billion)
*Source: National Electric System Development
Program (PRODESEN) 2016-2030
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CLEAN ENERGY
MAIN GOALS
•
Mexico has defined a clean power
generation goal of 35% by 2024
•
By 2030, 63% of electric
infrastructure will be for clean
power generation*
•
By 2021, 31% of the power will
come from renewable sources *
•
40 obsolete power plants will be
retired and replaced with cleaner
sources*
RENEWABLE ENERGY
NATIONAL INVENTORY
Renewable energy potential and probed
resources are registered in the
Renewable Energy National Inventory
http://inere.energia.gob.mx
- * The National Electric System Development Program (PRODESEN) available at
https://www.gob.mx/sener/acciones-y-programas/programa-de-desarrollo-del-sistema-electriconacional-33462
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FIRST LONG TERM AUCTION
WIND
19%
• 18 winning bids from 11 companies
• Additional 2,085 MW
• 2,600 million USD of investment (3 years)
• 5.3 million of Clean Energy Certificates
SOLAR
81%
• 75% increase in existing renewable capacity
Second
Auction
results:
September 30th
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SENER
www.gob.mx/sener
Follow Round 1:
www.ronda1.gob.mx
Renewable Energy National Inventory :
http://inere.energia.gob.mx/version4.5/
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