In 2014, Mexico’s President Enrique Peña Nieto announced the much-awaited liberalisation of the country’s state-owned energy sector. By attracting billions of dollars of private investment this move is expected to unlock vast reserves of oil and gas, reduce domestic power costs and give a significant boost to Mexico’s fast-growing economy.
The impact of the announcement was such that Moody’s Investors Service raised Mexico’s credit rating, while the president of Pemex, Mexico’s state-owned oil company, described the reform as “the most important economic change in Mexico in the last 50 years”.
Yet for investors to forecast potential profits Pemex must first set clear tariffs that outline the charges companies will incur to use Pemex’s existing infrastructure. Based on our proven methodology for setting such tariffs, which has been used across global energy markets, PA was engaged by Pemex to deliver this complex analysis.
In just 10 weeks we completed the analysis required to set the tariff model in four contracted blocks in Mexico´s North Region. Alongside this work, our experts developed the business model for each of the blocks, which clearly show how PEMEX can profit from the services it provides to new investors and operators.
Through our work we have given PEMEX the insight it needs to attract private investment, modernise its energy markets and boost its GDP.
“By bringing the knowledge we needed to define tariff models, the PA team has helped us achieve a critical step in attracting the investment required.”
Gustavo Urdaneta, Operations Director, Comesa (Subsidiary of PEMEX)