2019 US Mexico Agenda

Discussing CPS Energy’s strategy towards assuring sufficient natural gas supply for our power generation and distribution system and the integration of new technologies to meet the needs of our community.

Join us as noted academic experts share their nuanced perspectives on how trade, economics and US-Mexico relations could affect gas trade and demand in coming years.

1. How have your predictions on Mexican energy policy under the new administration panned out since last November?
2. The new administration has been clear in its focus on strengthening Pemex. Can Pemex fulfill the new administration’s designs for it?
a. Can Pemex be the future of Mexican energy? If so, how does it increase production?
b. What could the consequences be of starving other areas of the federal budget to boost Pemex?
3. What has the role of labor in the new energy landscape been and how could it evolve?
4. Could you discuss clientelism in the energy sector and talk about how it has or could affect the regulatory framework?
5. How politically feasible will the administration’s plans be in the coming years with mid-term elections coming in 2021? How do you see the president’s new Morena party evolving in its approach to energy policy in coming years?
6. How do you see the ratification of the USMCA playing out in coming months? How could that affect energy trade between the US and Mexico?
7. Given the new landscape in Mexico under the new administration, can it still be a natural market for Texas gas?
8. Could new pipeline transport infrastructure be developed in Mexico under the new administration?

Panel of leading Cross-Border energy analysts, including former Mexico government energy officials, provide perspectives on latest developments in policy and regulation impacting marketing and movement of natural gas across the border.

Authoritative energy analysts provide perspectives on recent and forecast supply/demand balances (US and Mexico), pricing and other factors impacting the US to Mexico export market.

Updates on pipeline infrastructure to supply markets across the US-Mexico border, as well as alternative transport methods including virtual pipelines.

Please join our hosts, the Corporate Sponsors, at a cocktail reception in your honor. Don’t make your dinner plans too early as hors d’oeuvres and an open bar will be the highlight of this extremely well attended session!

The U.S. Energy Information Administration is forecasting growth in U.S. natural gas exports in the near-term, which is projected to continue well into the next decades. This talk discusses current and future U.S. natural gas market trends and the effect on exports.

•Cross-Border Energy Infrastructure and Trade
•Policy report on Social Conflicts Around Infrastructure Projects in Mexico

1. Which price index will Mexico gas purchases rely upon? Near term and long term? HH, HSC, Waha, Aqua Dulce, other.

2. Do you see a local price index developing? What would need to happen for this to take place?

3. Will Mexico demand increase faster or slower than current market expectations? And will US production be able to keep pace?

4. How does CFE and Pemex controlling the majority of capacity impact the Mexican market?

5. Should Mexico move toward a single operator of all its pipelines? Or is a decentralized North American model preferable?

6. Which sectors will experience the most demand growth? Residential, Commercial, Industrial? Which one will affect the market the most and in what ways? (i.e. – only 14% of households in Mexico have access to air conditioning.)

7. Will credit be a concern? If so, how will credit concerns with Mexican buyers be addressed? Will it impact the ability to do longer term sales agreements?

8. Do end users in Mexico have plans to take pipeline capacity on pipelines within Mexico. Is this possible with CFE holding most of the capacity?

9. What things need to happen to signal the market to incentivize production growth and drilling?

10. How has the market changed since this conference last year?