PRESS RELEASE

Mexico's CRE approves procedure to facilitate participation of new gas marketers

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Monday, September 3, 2018

This press release from Mexico's Energy Regulatory Commission was published using an automatic translation system.

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The Governing Body of the Energy Regulatory Commission (CRE) approved that Phases II and III of the PCC be carried out in a single Final Phase and determined the characteristics that it should present.

In January 2017, the CRE approved the procedure for the implementation of the PCC, an instrument created in 2016 in accordance with the best international practices in the field. It is an instrument that promotes the entry of new participants to the natural gas industry for the benefit of the electrical, industrial, services and residential users sectors.

It established that, within a maximum period of four years, Pemex TRI should make available to third party traders the part of its portfolio of contracts that represented 70 percent of the total volume of natural gas associated with its commercialization activities. Also, the procedure stipulated that marketing users could choose to remain with Pemex or select another marketer without penalty.

Based on this procedure, the PCC should be implemented in three phases. On February 1, 2017, Phase I of the PCC began with a public event in which contracts that represented 31 percent of the volume of commercialization to remain with Pemex TRI and 21.3 percent of contracts were selected through a raffle. what should be made available to third-party marketers in this first phase, guaranteeing at all times the contractual freedom of the purchasers to choose the marketer of their choice.

As of March 2018, Pemex TRI had ceded more than 30 percent of the volume of natural gas that it traded at the beginning of the CCP, more than 10 percentage points higher than expected.

Because the results of Phase I were favorable, the CRE decided to unify Phases II and III in a single Final Phase, which consists of Pemex TRI making available to third party marketers 25.13 percent of its portfolio of contracts. commercialization corresponding to Phases II and III that to date are still supplied by Pemex.

The implementation of the Final Phase takes up some of the elements of Phase I in order to give continuity:

  1. Maximum publicity of contract data.
  2. Inclusion in the contracts of Pemex TRI, of a clause of anticipated termination without penalty, during the implementation of the PCC.
  3. Obligation for Pemex TRI to send a binding offer, which must be respected at the signing of the contract.
  4. Use of a base reference for the presentation of offers to users by Pemex TRI and the marketers, which facilitates the comparison of offers by users.
  5. Clarida the implementation process for the assignment, as well as follow-up of the same

It should be noted that marketing users can continue to choose to stay with Pemex or select another marketer without penalty.

The PCC facilitates the participation of new marketers and promotes the development of a dynamic, competitive and inclusive natural gas market.