Alex Vasquez, Bloomberg News

MEXICO CITY
EnergiesNet.com 10 16 2024

Companies including Amazon.com Inc. and Woodside Energy Group Ltd. announced projects in Mexico totaling about $20 billion, a victory for President Claudia Sheinbaum as she seeks to attract investment from wary business leaders.

Economy Minister Marcelo Ebrard said Woodside plans to invest $10.4 billion to develop a deepwater project with state oil company Petroleos Mexicanos in the Gulf of Mexico. Amazon will spend $6 billion through 2026 to strengthen its network and digital capacity in the country, he said.

Royal Caribbean Cruises Ltd. is planning a $1.5 billion tourist project in Quintana Roo state, Ebrard said in a news conference after a meeting of the US-Mexico CEO Dialogue on Tuesday.

Addressing the leaders of about 240 Mexican and foreign companies, Sheinbaum sought to downplay concerns that a series of constitutional reforms will diminish democracy and judicial independence in the country, the largest trading partner of the US.

Among those reforms are a judicial overhaul approved last month in Congress to elect federal judges by popular vote and an energy bill to give state-owned companies priority over private firms in energy generation and power transmission. Critics have said the judicial changes make investment in Mexico riskier because control of the courts is likely to go to Sheinbaum’s popular Morena party.

“The president doesn’t want to control the judiciary,” Sheinbaum said. “What we want is to have a judiciary free of corruption.”

Sheinbaum also said that, although the government wants to control 54% of energy generation and transmission in Mexico, there will be clear rules for private investment in the remaining 46%. During the CEO meeting, the government created working groups with companies to address energy projects.

The government will have its energy plan ready by the end of the year, Sheinbaum said. A set of rules known as secondary laws will define the participation process of private companies in energy projects.

After listening to businesses concerns, the government will create a digital transformation agency to reduce red tape and help companies with investment projects, Sheinbaum said. 

The North American free-trade pact known as the US-Mexico-Canada Agreement, or USMCA, must be strengthened so that the three countries complement each other rather than compete with each other, she said. 

bloomberg.com 10 15 2024