Mexico\u00a0<\/a>is looking to enhance its energy ties with India through greater participation of Indian companies, especially in meeting its gasoline deficit.<\/p>\n 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.\u00a0Mexico\u00a0<\/a>is among the top five\u00a0crude oil suppliers\u00a0<\/a>to India.<\/p>\n In an interview with Business Standard, Aldo Flores-Quiroga, deputy minister for hydrocarbons, Mexico, said, \u201cIndian companies can participate in the full\u00a0value chain.<\/a>\u00a0We have investment requirement in upstream, mid-stream and downstream.\u00a0Mexico\u00a0<\/a>has opened up the sector through a competitive and transparent process.\u201d<\/p>\n Mexico\u2019s shale blocks are in Burgos Basin, in the northwestern border state of Tamaulipas, where\u00a0state-owned oil\u00a0<\/a>company Pemex has drilled some 20 exploratory wells. The Mexican basin is considered an extension of America\u2019s Eagle Ford basin, which revolutionised shale\u00a0gas and oil production.<\/a>\u00a0Flores-Quiroga said\u00a0Mexico\u00a0<\/a>was a net importer of\u00a0natural gas\u00a0<\/a>and gasoline (petrol). \u201cMexico\u00a0<\/a>is the sixth largest market for\u00a0petroleum products\u00a0<\/a>in the world, and it imports 60-70 per cent of its gasoline requirement. So there is an opportunity for investment,\u201d he said.<\/p>\n Almost three years ago,\u00a0Mexico\u00a0<\/a>started opening up the\u00a0oil sector\u00a0<\/a>after 60 years. \u201cResponse from inside and outside\u00a0Mexico\u00a0<\/a>has been amazing. We had one company that was in charge of the full\u00a0value chain.<\/a>\u00a0Now, we have over 150 national and international companies in the\u00a0oil sector.<\/a>\u00a0Those companies have announced investment commitment close to $200 billion so far, of which $150 billion is in upstream,\u201d he said, adding, \u201cShould they reach the commercial stage, we will see $150 billion invested over the life of project.\u201d<\/p>\n The minister said it was a similar story in the mid and downstream sectors. Its\u00a0natural gas\u00a0<\/a>market has over 60 registered participants and 24 companies engaged in daily transactions. \u201cThe gasoline market, where we would like India to participate, has also been transformed. We had one gasoline brand, now we have 40,\u201d he said.<\/p>\n The country, he said, still needed to \u201cfind depth in storage and distribution segment\u201d. \u201cWe have a lag in the energy infrastructure. With this opening, we expect to see more investment to improve the logistics segment.\u201d<\/p>\n 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\u00a0oil sector.<\/a>\u00a0The deputy minister, nonetheless, ruled out any change in policy, stating it was supported by the country\u2019s constitution. Besides, there are independent trade commissions.<\/p>\n <\/p>\n
![\"\"](\"https:\/\/nrgibroker.com\/wp-content\/uploads\/2018\/04\/IEF-300x200.jpg\")
<\/p>\n","protected":false},"excerpt":{"rendered":"