Basham, Ringe y Correa, S.C.
  November 27, 2012 - Mexico

New Energy Policy and Infrastructure Projects
  by Daniel del Rio, Juan Carlos Serra, Carlos Alberto Vizcaino and Fernando Ortiz

Enrique Peña Nieto, President-elect of Mexico, and his transition team, have stated in various forums the necessity of 
promoting a second generation energy reform (the “Reform”) that would have a direct impact on the manner in which the 
national oil industry operates, specifically “Petroleos Mexicanos” and its subsidiaries (“Pemex”). Some proposed aspects of the 
Reform have been outlined, of which the following stand out:

Encourage private sector investment in some Pemex production areas consisting of exploration, exploitation, refining, 
distribution, storage, transport, and marketing through first-hand sales. 

Promote and develop a market for shale gas as a source of energy. As of today, it has not been defined if the shale gas 
promotion is to be opened to private sector investment or continue as a strategic area under Pemex control.
Improve the productive and economic processes of Pemex following a similar model as that used by “Petroleo Brasileiro, 
S.A.” (“Petrobras”) where private investment and public investment converge, creating a state-owned company with 
mixed capital. It must be remembered that in 1997, Petrobras opened itself to private investment through the sale in that 
year of 61% of its shares.

It is extremely important for Mexico to raise the issue of energy reform at the beginning of the next presidential period, due to 
the fact that all energy projects take years to yield profits.  Therefore, if the intention lies in rethinking the way Pemex currently 
conducts business related to oil upstream, midstream, and downstream activities, it is necessary to amend not only the 
Regulatory Law to Article 27 of the Mexican Constitution regarding the Petroleum Sector, but also Articles 27 and 28 of the 
Mexico’s Federal Constitution.

Other proposals that the next government is planning to carry out are related to: (a) a reduction in electricity charges by 
eliminating regressive subsidies and improving the focus of electricity subsidies, and (ii) an increase in electricity generation 
capacity from renewable energy sources, for which the possibility of concluding agreements for economic cooperation and 
sustainable development with other countries that are advanced in the development of this type of energy, as in the case of 
Germany, has been raised.

Therefore, it is important that in the formulation of the National Energy Strategy which by law, the President is obliged to send 
to Congress in February of each year, these topics that will bring improvement to the country's energy sector are included.
With respect to the development of infrastructure projects that are planned to be carried out in the coming years, it should be
mentioned that Gerardo Ruiz-Esparza, former Secretary of Communications of the State of Mexico and current Coordinator of 
Infrastructure of the transition team of President-elect Enrique Peña Nieto, said that right now work is being done on outlining 
the new National Infrastructure Program.  Considering the commitments made in the election campaign and the pending 
projects of the present administration, this may include the following items:

RAILWAYS
Construction of the Mexico-Toluca Interurban Train (first stage).
Queretaro-Mexico City fast train.
Yucatan peninsula fast train.
Expansion of four new sections (10km) of the Electric Urban Train System of Guadalajara, Jalisco.
Construction of 190km of Aguascalientes-Guadalajara railway section, for large load transport.
Construction of lines 3 and 4 of Monterrey subway.
Construction of Coatzacoalcos rail bypass.
Construction of Celaya rail bypass.

PORTS
Expansion of Veracruz port.
Construction of a passenger terminal at Puerto Vallarta port to promote the arrival of cruise ships.
Modernization of Ciudad del Carmen port to receive a greater number of ships.
Modernization of Guaymas port.
Modernization of the oil terminal at Seybaplaya, Campeche port.

AIRPORTS 
Construction of an airport in the State of Hidalgo.
Construction of an airport in the Itsmo de Tehuantepec, Oaxaca, region.
Construction of a freight airport in Nuevo Laredo, Tamaulipas.
Construction of an airport in Ensenada, Baja California Norte.
Modernization of Xalapa, Veracruz airport.
Modernization of Chetumal, Quintana Roo airport.

FREEWAYS
Construction: (a) Cardel-Poza Rica freeway (first stage), (b) Puerto Vallarta, Jalisco automobile bypass, (c) 
Tuxpan-Tampico freeway, (d) Oaxaca-Puerto Escondido freeway, (e) Ciudad del Carmen freeway bypass (first 
stage), (f) Ciudad Obregón bypass, and (g) Continuation of Jala-Compostela-Bahía de Banderas freeway.
Expansions: (a) to 4 lanes, Coatzacoalcos-Tuxtla Gutiérrez freeway, (b) to 8 lanes México-Toluca federal freeway 
(La Marquesa-PaseoTollocan section), (c) León-Lagos de Moreno, (d) to 6 lanes Manzanillo-Colima-Guadalajara, 
in sections Manzanillo-Colima and Colima-Tonila.

Modernization of Freeways:  (a) Tampico-Ciudad Victoria (First Stage); (b) Uruapan-Zamora (first stage), (c) 
Tepeaca- Zacatepec and Tepeaca- Tehuacán, (d) Palenque-San Cristobal de las Casas, north and south bypasses 
of Tuxtla Gutiérrez, (e) San Pedro-Cuatro Cienegas, (f) Gómez Palacio-Torreón peripheral freeway, (g) Silao-San
Felipe, (h) Pachuca-Huejutla, and (i) Villahermosa-Cárdenas.

OTHERS
Construction of a BRT articulated transport system in the city of Tijuana.
Massive transport system to the east of Mexico City.
The lawyers of the Energy, Mining and Infrastructure areas of the firm are at your service for any questions or comments on 
the above.



Read full article at: http://www.basham.com.mx/uploads/pdf/Notas%202012/Noviembre2.pdf