{"id":3769,"date":"2021-05-04T11:40:20","date_gmt":"2021-05-04T17:40:20","guid":{"rendered":"http:\/\/accesstomexico.mx\/blog\/?p=3769"},"modified":"2021-05-06T11:43:59","modified_gmt":"2021-05-06T17:43:59","slug":"ienova-reports-growth-in-mexico-natural-gas-business-as-fundamentals-remain-strong","status":"publish","type":"post","link":"https:\/\/accesstomexico.mx\/blog\/ienova-reports-growth-in-mexico-natural-gas-business-as-fundamentals-remain-strong\/","title":{"rendered":"IEnova Reports Growth in Mexico Natural Gas Business as Fundamentals Remain Strong."},"content":{"rendered":"\n
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NATURAL GAS INTELLIGENCE<\/a><\/p>\n\n\n\n

Infraestructura Energ\u00e9tica Nova (IEnova) reported growth in volumes and revenue from its natural gas business in Mexico during the first quarter and expects the trend to continue, management said during an earnings call last week.<\/p>\n\n\n\n

CEO Tania Ortiz Mena told analysts last Thursday that the Energ\u00eda Costa Azul (ECA) liquefied natural gas (LNG) export project in Baja California state remains \u201cour main area of focus,\u201d and that, \u201cwe continue to see opportunity for expansion to feed new offtakers along our natural gas pipelines\u2026\u201d<\/p>\n\n\n\n

Sanctioned in late 2020, ECA is on track to be the first LNG export terminal on the west coast of North America, with first production expected in late 2024.<\/p>\n\n\n\n

IEnova, the Mexico unit of San Diego, California-based Sempra Energy,  has more than 2,900 kilometers (1,801 miles) of natural gas pipelines in operation and about 200 kilometers (124 miles) under construction in Mexico. <\/p>\n\n\n\n

The pipelines are part of a massive buildout anchored by state power utility Comisi\u00f3n Federal de Electricidad (CFE) to secure natural gas supply from the United States amid declining production by state-owned Petr\u00f3leos Mexicanos (Pemex).<\/p>\n\n\n\n

U.S. natural gas exports to Mexico hit a record single-day high of 7.1 Bcf\/d on April 14.<\/p>\n\n\n\n

Ortiz indicated it is still too early to say whether a recent controversial reform to Mexico\u2019s hydrocarbons law will impact IEnova\u2019s activities in Mexico. The law gives the state greater control over granting and revoking permits in the oil, gas and petrochemicals business.<\/p>\n\n\n\n

Ortiz said since \u201cthose provisions are very general and, of course, we are always in full compliance with all of our permit obligations, I think we need to look at the secondary laws that will regulate those activities in detail to really understand what the impact may be.\u201d<\/p>\n\n\n\n

Although the nationalist energy policies of Mexican President Andr\u00e9s Manuel L\u00f3pez Obrador have caused consternation among investors, Ortiz offered a different perspective. She said in the energy sector, \u201cyou need to keep your sight on the fundamentals and on the long-term, and Mexico continues to need energy infrastructure to be able to supply its energy needs, and it will continue to require private investment to meet those needs.\u201d<\/p>\n\n\n\n

She added, \u201cWe are going through some important changes in the regulatory and legal framework [in] the sector. So we need to be careful as to how we evaluate those changes and continue to find ways to collaborate with the current administration to continue developing projects.\u201d<\/p>\n\n\n\n

Sempra\u2019s Mexico business has spanned multiple governments and regulatory changes.<\/p>\n\n\n\n

IEnova was the first private company to be awarded a natural gas distribution contract through a public auction following a 1995 reform partially liberalizing Mexico\u2019s energy sector. It built the first liquefied natural gas (LNG) import terminal on the west coast of North America. <\/p>\n\n\n\n

IEnova also jointly developed the 2.6 Bcf\/d Sur de Texas-Tuxpan subsea pipeline connecting U.S. gas supply to various demand points in Mexico.<\/p>\n\n\n\n

Despite the uncertainty around recent regulatory changes, Ortiz said, \u201cwe continue to believe that there will be\u2026space to develop new projects.\u201d IEnova will continue to \u201cwork hand-in-hand with CFE and Cenagas, particularly to try to develop new projects together.\u201d<\/p>\n\n\n\n

Cenagas is the state-owned operator of Mexico\u2019s Sistrangas national pipeline grid, which interconnects with privately owned pipelines such as those developed by IEnova.<\/p>\n\n\n\n

Ortiz said IEnova is \u201cworking very closely\u201d with CFE to ensure gas supply for temporary power plants on the Baja California peninsula for the summer. \u201cBy the way, we did the same during the February Texas storms, where we supported CFE to ensure that they had appropriate gas supply,\u201d she said. \u201cSo it\u2019s\u2026very, very close collaboration, same thing with Cenagas.\u201d<\/p>\n\n\n\n

IEnova reported net profit of $110.5 million (8 cents\/share) for the quarter, versus $46.3 million (3 cents) in the first quarter of 2020. Management attributed the increase mainly to noncash exchange rate effects and lower operating expenses.<\/p>\n\n\n\n

Revenue from the natural gas segment rose year\/year to $260 million from $199 million, while total revenue grew to $365.6 million from $313.2 million. The increase was mainly related to higher price and volume of natural gas sold, as well as higher distribution rates and volume, offset by lower results at the Termoel\u00e9ctrica de Mexicali power plant, management said. <\/p>\n\n\n\n

Andrew Baker. (2021). IEnova Reports Growth in Mexico Natural Gas Business as Fundamentals Remain Strong. USA. Natural Gas Intelligence<\/em>. Recuperado de <\/strong><\/p>\n\n\n\n

https:\/\/www.naturalgasintel.com\/ienova-reports-growth-in-mexico-natural-gas-business-as-fundamentals-remain-strong\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

NATURAL GAS INTELLIGENCE Infraestructura Energ\u00e9tica Nova (IEnova) reported growth in volumes and revenue from its natural gas business in Mexico during the first quarter and expects the trend to continue, management said during an earnings call last week. CEO Tania […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3769","post","type-post","status-publish","format-standard","hentry","category-uncategorized","clearfix"],"_links":{"self":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/comments?post=3769"}],"version-history":[{"count":1,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3769\/revisions"}],"predecessor-version":[{"id":3771,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3769\/revisions\/3771"}],"wp:attachment":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/media?parent=3769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/categories?post=3769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/tags?post=3769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}