Chinese Role Expected in Mexico's Energy Reform
Chinese Role Expected in Mexico's Energy Reform
As Mexico opens up its energy sector, China is expected to play a role in financing projects, advised a group of Mexican legislators during an AS/COA panel discussion.
As Mexico opens up its energy sector to outside investment, China is expected to play a role especially in financing projects according to observers.
Last August Mexican President Enrique Peña Nieto signed a major series of energy reforms into law affecting the oil, natural gas and electricity sectors. Panelists at a Dec 1 forum on energy reform at the Americas Society/Council of the Americas (AS/COA) in New York agreed that the Mexican economy will reap major benefits from the new legislation, including the creation of over 2 million jobs and boosting the nation's gross domestic product (GDP) by 2 percent.
"After 70 years of a monopoly, private firms can invest in the oil sector," said Ruben Camarillo Ortega, a Mexican lawmaker and secretary of the energy commission involved in drafting the nation's energy reform. The legislation ended the monopoly power of state-owned Petróleos Mexicanos or Pemex. He also said private investment will now be encouraged in the electricity sector.
A huge loan from China nearly two years ago means it will be a participant in energy reform, according to Kevin Gallagher, associate professor and co-director of the Global Economic Governance Initiative at the Frederick S. Pardee School of Global Studies at Boston University....
