Mexico’s ruling Morena party will seek constitutional reforms to counter the 2014 historic energy market opening in a bid to restore the dominance of state-owned Pemex.
The party will seek “an integral energy reform,” that will include “reform of the constitution, the hydrocarbons law and the energy regulatory law,” according to Morena’s recently agreed agenda for the rest of this legislative period that ends in January.
The 429-point legislative agenda includes plans to reform the Pemex law in order to “strengthen the company’s dominant role in the market,” carry out fiscal amendments to improve the company’s financial situation and a reform of the renewable energy laws.
A constitutional reform requires a two-thirds majority in both the lower and upper house as well as a simple majority in state legislatures. Amendments to general laws require only a simple majority in the federal legislature.
Mid-term elections coming next summer could either increase or decrease Morena’s chances of pushing through such reforms by changing the balance of power in congress. Morena now holds slightly less than a two-thirds majority in both houses, but has allied parties that could vote along its lines.
President Andres Manuel Lopez Obrador took office in December 2018 pledging not to change the 2014 energy reform that dismantled state-owned Pemex and CFE’s monopolies. But his government immediately suspended all new avenues for fresh private investment in the oil, gas and power sectors and has become increasingly critical of all contracts awarded. He broached in July sending a proposal to congress in 2021 to reverse parts of the reform.
Since December last year, regulators and the energy ministry have attempted to push through incremental amendments to energy regulation that would reverse portions of the market opening and restore Pemex’s predominance in the market. The move that has been met with substantial legal action from industry associations and private companies.
Rebecca Conan. (2020). Mexico’s Morena party to seek energy reform change. USA. ARGUS. Recuperado de
