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CFE

MEXICO - Energy & Mining

Miguel Santiago Reyes Hernández

General Director, CFEnergía

Bio

Miguel Santiago Reyes Hernández is the Managing Director of CFEnergía, S.A. de C.V. and CFE International. He has a PhD in economics from Universidad de las Américas, Puebla, and is an academic at the Ibero-American University of the City of Puebla and Mexico City.

"One of our key accomplishments has been the establishment of such strategic alliances, fostering collaborations between companies."
CFEnergía is actively working toward a sustainable energy transition system in Mexico through collaborations and partnerships, support for think tanks, and a focus on regional development.
Why is CFEnergía establishing strategic alliances with the private sector?

One of our key accomplishments has been the establishment of such strategic alliances, fostering collaborations between companies. Our partnership with TC Energy, for the extension of the marine gas pipeline, stands out in this endeavor. We have set construction records and streamlined permit acquisition. In the past, we used to engage with service providers, but as partners, each individual now has a defined role. We have a dedicated committee and monthly working sessions, enhancing project involvement compared to conventional service providers. This collaborative approach has expedited real estate permits, general permits, and construction processes. We anticipate a strategic investment by CFE in this alliance, pending support from the Secretary of Energy, the government of the state of Hidalgo, and other entities to resolve pending real estate rights for the completion of the Tula-Villa de Reyes Pipeline

What other projects are you seeking partnerships for, and which projects do you aim to promote for private-sector involvement?

Our alliances include collaborations with two companies specializing in LNG exports. Mexico Pacific Limited, in alliance with major US gas and petroleum producers, is set to become the largest gas plant in Mexico, supplying 40% of gas for export to the Asian market. We are working with the Sonora government to ensure benefits for the community, and not just in the area where the plant is to be located, but in all of the municipalities this gas pipeline will pass through. It will connect Texas with Puerto Libertad in Mexico, at a total length of over 1,000km. Another collaboration is with the North American company, New Fortress Energy, and involves exporting natural gas to Europe and other markets. The plant is located 26km offshore, and we would like to build the new onshore facilities and provide a large part of the infrastructure for the development of other liquefaction plants in the area. Our alliances extend to French company ENGIE for the expansion of the gas pipeline in the Yucatán Peninsula and Carso Energy for the construction of a gas pipeline running from Caborca to Colorado and then to Mexicali. We are actively seeking strategic alliances in the US for storage and production, aiming to reduce vulnerability and collaborate with US investors. This approach aligns with CFEnergía’s commitment to being not only as a power provider, but also a socially responsible energy company. We have a pending alliance with Sempra, exploring the potential establishment of a new liquefaction plant. Our team is diligently assessing various alternatives to ensure a strategic fit. These alliances aimed to address past challenges, and having successfully overcome them, we are now analyzing potential partners who align with our interests. Our objective is to create a mutually beneficial scenario, allowing our partners to profit while securing a fixed rent for us. This approach ensures a stable supply for our generation and liquefaction plants.

What steps is the utility company taking to establish a more integrated energy system in Mexico with a regional focus?

We are collaborating with TC Energy and considering supporting and financing think tanks in Mexico, the US, and Canada to facilitate discussions on energy transition. Most associations refer to energy transition while lacking specialized knowledge on that subject. The need for renewable energy is unquestionable, but we should consider the type of energy that will support such a transition because it will require a strengthening of transmission lines, investment in batteries, infrastructure, and backup plans to mitigate adverse weather conditions. Our focus is on making this transition sustainable by leveraging existing regional resources realistically and within a feasible time frame. Meanwhile, strengthening universities and research centers is crucial to providing companies with informed decision-making tools. We are also committed to ensuring equal development among regions, rather than merely focusing on border areas.

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