Secretary of Energy June 20th, 2016 #EnergiaMX

Transcription

1 Mexico s New Energy Industry Secretary of Energy June 20th, 2016 #EnergiaMX

2 THROUGHOUT THE VALUE CHAIN OIL&GAS INVESTMENT OPPORTUNITIES DOWNSTREAM UPSTREAM EXPLORATION AND PRODUCTION OF HYDROCARBONS MIDSTREAM EXPANSION OF THE GAS PIPELINE NETWORK LIQUEFACTION AND COMPRESSION TERMINALS AND REGASIFICATION OF NATURAL GAS TERMINALS NATURAL GAS AND LP GAS COMMERCIALIZATION PETROCHEMICALS PRODUCTION DISTRIBUTION AND STORAGE NETWORKS FOR GASOLINE AND DIESEL REFINING: GASOLINE AND DIESEL PRODUCTION COGENERATION PROJECTS IN REFINERIES AND GAS PROCESSING CENTERS RETAIL: GASOLINE AND DIESEL 2

3 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: 3

4 ROUND ONE Exploration in Shallow Waters Extraction in Shallow Waters Extraction in Onshore Fields 2 Contracts awarded 3 Contracts awarded 25 Contracts awarded 4

5 INVESTING IN MEXICO: ROUND ONE 30 CONTRACTS AWARDED* 3 AWARDED: 69% (33 OF 48 BLOCKS) 28 NEW COMPANIES OF 7 COUNTRIES 18 MEXICAN COMPANIES BIDS FOR HYDROCARBONS CONTRACTS MORE THAN 70% OF INCOME FOR THE STATE 7 BILLION USD OF INVESTMENT * 24 SIGNED 5

6 Exploration in Deep Water License Contract 10 exploration areas 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 ROUND ONE FOURTH BID Mexico s new contracting model is designed to balance risks, attract investment and access to technology. *Mmboe: Million Barrels of Oil Equivalent 6

7 EXPANSION OF THE GAS PIPELINE NETWORK Increase natural gas based power generation (cheaper and cleaner) Meet natural gas industrial demand in the country 7

8 NATURAL GAS INVESTMENT OPPORTUNITIES Source: Pemex Institutional Database, ; Energy Information System, SIE, MMcf: Million cubic feet 8

9 Mexicali Los Algodones I y II Sásabe-Pto. Libertad Sásabe Pto. Libertad Nogales El Encino-Topolobampo Pto. Libertad-Guaymas Guaymas Guaymas-EL Oro Naco Agua Prieta Cd. Juárez / El Hueco Sásabe San Isidro Tarahumara Samalayuca San Isidro San Isidro-Samalayuca Samalayuca-Sásabe Ojinaga Acuña Ojinaga Piedras Ojinaga-El Encino Negras El Encino EXPANSION OF THE GAS PIPELINE NETWORK ( ) El Encino-Laguna Colombia Cd. Mier Reynosa / Argüelles Operational Gas Pipelines to 2012 Operational Gas Pipelines to 2016 In development Pipelines Pipelines Projects LNG Regasification Centers Petrochemical Facilities Gas Processing Centers Gas Interconection before 2012 Gas Interconection after 2012 Additional 10, 000 KM El Oro Topolobampo El Oro-Mazatlán Estimated Investment: 16 billion USD Mazatlán Durango Zacatecas Villa de Reyes-Ags-Guadalajara La Laguna La Laguna- Ags. Zacatecas Guadalajara Lázaro Cárdenas Los Ramones S.L.P. V. Reyes Naranjos Tamazunch ale Tamazunchale-El Sauz Tuxpa n Nativit Tuxpan-Tula as Morelos FIVE YEAR PLAN Available in Spanish at: MMcf: Million of cubic feet Ags. Escobedo Apaseo el Alto Pedro Escobedo Acapulco Tul a Huexca Camar go NET Mexico Río Bravo Matamoros Matamoros-Tuxpan Los Ramones Altamira Jáltipa n Salina Cruz Nvo. Pemex Cd. Pemex Ampliación Mayakán Tapachula Mérida Cancún 9

10 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

11 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. Pajaritos-Salina Cruz Minatitlán-Villa Hermosa TAR Pto. Chiapas 11

12 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, ; Energy Information System, SIE, Mbd: Million barrels per day 12

13 Transition to market prices for gasoline and diesel retail Pemex product offering and other suppliers GRADUAL MARKET LIBERALIZATION: GASOLINE AND DIESEL 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 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 ** Up to June 10 th

14 INVESTMENT OPPORTUNITIES IN ELECTRICITY POWER GENERATION SPOT MARKET NEW INFRASTRUCTURE TRANSMISSION LINES COLLABORATE WITH CFE IN DEVELOPING TRANSMISSION AND DISTRIBUTION LINES TRADING OF: ENERGY CAPACITY CLEAN ENERGY CERTIFICATES (CECS) TRANSMISSION RIGHTS AUCTIONS 14

15 Subsidiary A Short Term Transactions ELECTRIC MARKET RETAILIN G Unregulated Supply CONSUPTI ON POWER GENERATION ELECTRIC MARKET RETAILING CONSUMPTION CENACE Independent System Operator NEW ELECTRICITY MODEL Qualified Users Subsidiary B Subsidiary C Spot Market Basic Service Users Private Parties Long Term Contracts Auctions Regulated Supply CFE legal division and Contracts and Contracts Transmission Distribution 15

16 GW INVESTMENT IN POWER GENERATION AND TRANSMISSION LINES New Power Generation Capacity, Existing Retired New 57 MW new capacity Competitive CFE CFE PPAs Private 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) 13% for power distribution ($17 billion) 12% for transmission lines ($16 billion) *Source: National Electric System Development Program (PRODESEN)

17 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* RENEWABLE ENERGY NATIONAL INVENTORY Renewable energy potential and probed resources are registered in the Renewable Energy National Inventory By 2021, 31% of the power will come from renewable sources * 40 obsolete power plants will be retired and replaced with cleaner sources* - * The National Electric System Development Program (PRODESEN) available at 17

18 SOLAR 81% WIND 19% FIRST LONG TERM AUCTION 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 75% increase in existing renewable capacity Second Auction results: September 30 th 18

19 SENER Follow Round 1: Renewable Energy National Inventory : 19