You are here: Home » Economy & Policy » News
Business Standard

International Energy Forum: Mexico eyes strong energy ties with India

Shale auction, gasoline deficit throw up opportunities for Indian companies

Jyoti Mukul  |  New Delhi 

Aldo Flores-Quiroga, deputy minister for hydrocarbons, Mexico.	Photo: Dalip Kumar
Aldo Flores-Quiroga, deputy minister for hydrocarbons, Mexico. Photo: Dalip Kumar

is looking to enhance its energy ties with India through greater participation of Indian companies, especially in meeting its gasoline deficit.

The Latin American country will conduct its first shale auction in September, but before that it will carry out another round of auction of onshore conventional blocks in July, in which Indian companies are likely to take part. is among the top five to India.

In an interview with Business Standard, Aldo Flores-Quiroga, deputy minister for hydrocarbons, Mexico, said, “Indian companies can participate in the full We have investment requirement in upstream, mid-stream and downstream. has opened up the sector through a competitive and transparent process.”

Mexico’s shale blocks are in Burgos Basin, in the northwestern border state of Tamaulipas, where company Pemex has drilled some 20 exploratory wells. The Mexican basin is considered an extension of America’s Eagle Ford basin, which revolutionised shale Flores-Quiroga said Mexico was a net importer of and gasoline (petrol). “Mexico is the sixth largest market for in the world, and it imports 60-70 per cent of its gasoline requirement. So there is an opportunity for investment,” he said.

Almost three years ago, Mexico started opening up the after 60 years. “Response from inside and outside Mexico has been amazing. We had one company that was in charge of the full Now, we have over 150 national and international companies in the Those companies have announced investment commitment close to $200 billion so far, of which $150 billion is in upstream,” he said, adding, “Should they reach the commercial stage, we will see $150 billion invested over the life of project.”

The minister said it was a similar story in the mid and downstream sectors. Its market has over 60 registered participants and 24 companies engaged in daily transactions. “The gasoline market, where we would like India to participate, has also been transformed. We had one gasoline brand, now we have 40,” he said.

The country, he said, still needed to “find depth in storage and distribution segment”. “We have a lag in the energy infrastructure. With this opening, we expect to see more investment to improve the logistics segment.”

Entering the Mexican market, however, could be tricky, as a change in the political regime is scheduled for July. The front-running Left leaning party said it would review the liberal investment policy in the The deputy minister, nonetheless, ruled out any change in policy, stating it was supported by the country’s constitution. Besides, there are independent trade commissions.

First Published: Thu, April 12 2018. 22:35 IST