Mexican lawsuit risks Permian route to market
Prolonged evacuation bottleneck has delayed cross-border flows from the key US basin
Mexico's Comisión Federal de Electridad (CFE), the state-owned electricity utility, has started legal proceedings against seven natural gas pipelines. The move intensifies fears about both the anti-business agenda of the country's president Andres López Obrador and further delays to a much-needed release valve for associated gas production in the prolific Permian Basin. The López Obrador regime had previously vowed to respect existing energy market contracts. But the fact that a government-backed entity initiated arbitration procedures on 23 June—relating to legislation passed by the previous administration—signals a significant escalation of hostility. The dispute centres on a force majeure
Also in this section
28 March 2024
The country’s largest gas field is a bright spot for the North Sea, boasting cleaner operations amid a changing mood in Europe over hydrocarbons
28 March 2024
Whether OPEC+ starts to unwind its oil production cuts from June will depend on heavily debated unfolding supply-demand balances
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources