On account of a rising community of pipelines, Mexico’s reliance on gasoline from Texas sharply scaled up starting round 15 years in the past as U.S. shale tasks took off. (Waldo Swiegers/Bloomberg Information)
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Canadian corporations might assist Mexico cut back its lopsided dependency on imported U.S. pure gasoline by maximizing its personal home provides of the gasoline, based on the pinnacle of Canada’s prime enterprise group.
Whereas Mexico has for many years been a significant oil producer, native pure gasoline output has didn’t sustain with demand because it as an alternative favored imports from U.S. suppliers, largely throughout the border in Texas.
However Canadian companies see alternatives to extend funding in Mexican power, mentioned Enterprise Council of Canada CEO Goldy Hyder after assembly with Mexican President Claudia Sheinbaum. Executives from main pipeline builders Atco and TC Power Corp. had been current on the sit-down with Sheinbaum on the Group of Seven summit in Kananaskis, Alberta.
“There was a common feeling that it’s in Mexico’s curiosity to diversify extra its sources of power. It’s depending on pure gasoline in america. And so clearly Canada may be very useful in that regard,” Hyder mentioned. “We’ve tasks which can be already happening there which can be going to permit Mexicans to have power safety as a result of the gasoline is in Mexico and it’s being extracted.”
State-owned Petroleos Mexicanos, identified regionally as Pemex, has struggled for years to spice up its pure gasoline output at dwelling. However as a consequence of a rising community of pipelines, Mexico’s reliance on gasoline from Texas sharply scaled up starting round 15 years in the past as U.S. shale tasks took off. Greater than 70% of the Latin American financial system’s demand for the gasoline is now glad by way of cross-border imports.
Sheinbaum met with the enterprise council June 16 earlier than her assembly with Canadian Prime Minister Mark Carney on June 17. U.S. President Donald Trump’s sudden return to Washington late June 16 led to the cancellation of what would have been his first in-person assembly with Sheinbaum. That sit-down was seen as one of many major causes for the Mexican president’s attendance as an invited visitor.
Sheinbaum’s like-minded predecessor, Andres Manuel Lopez Obrador, sought to wean Mexico off of imported gasoline provides whereas prioritizing extra home refining capability. Since she took workplace in October 2024, Sheinbaum has largely continued the coverage, although she has efficiently pushed a reform to encourage non-public partnerships with Pemex.
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“We’ve the technological know-how, we now have the capital to take a position and deploy, and you’ve got a want to not have all of your eggs in a single basket about the place you get your power. And so we can assist improve your power safety,” Hyder mentioned. “What the president and others had been describing is extra that we’re searching for methods to advertise the participation in an accelerated approach of overseas corporations to spend money on Mexico.”
As Pemex struggles to elevate slumping manufacturing and dig itself out from underneath a roughly $100 billion debt burden, tie-ups with non-public and overseas companies might assist if Sheinbaum’s authorities will get on board.
Mexico imported greater than 7.1 billion cubic ft of pure gasoline per day from the U.S. throughout peak season in August final yr, based on information from the U.S. Power Data Administration.
TC Power’s 444-mile Southeast Gateway Pipeline is quickly anticipated to start delivering as much as 1.3 billion cubic ft of pure gasoline produced in Texas to southern Mexico. The Canadian agency partnered with Mexican state utility Comision Federal de Electricidad on the venture. As soon as on-line, it can allow two main energy crops to burn pure gasoline as an alternative of oil and diesel.
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