Mexico to Offer $4.9 Billion in Energy Contracts

Mexico says it expects to put out for bid $4.9 billion in electrical generation and natural gas pipeline projects as part of the opening of the nation’s state-run energy sector.

The Federal Electricity Commission wants to build several power plants, but didn’t set a date for the opening of bidding.

Commission director Enrique Ochoa said Monday the bidding will be open to private and foreign firms.

The government wants to build more natural gas-fired plants, to reduce costs. Mexico has high electricity rates, which officials say limits the growth of some businesses.

Some of the pipelines would be built in Texas, to take advantage of cheaper U.S. gas.

Mexico began opening its oil and electricity industries to private and foreign firms earlier this month.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza