IEnova is considering opportunities to increase electricity exports to the US through the development of new solar and wind power plants in the north of Mexico, although its ECA plant is still the priority, the company's CEO said April 29 during a conference call with investors.
"We do continue to see opportunities in renewables, particularly cross-border projects in Baja California, an area where we are very active, and we also see opportunities for expansion to feed new offtakers along the national gas pipelines," CEO Tania Ortiz Mena said during the company's Q1 conference call.
The Mexico unit of California-based Sempra Energy has three divisions: natural gas, storage and power, with the first two accounting for over 90% of profits, according to the company's financial reports. The power division owns plants all over Mexico, some of which export electricity to the US.
However, IEnova's Energia Costa Azul (ECA) terminal is the main priority, Mena said.
IEnova is working to add liquefaction capabilities at its regasification terminal at ECA in order to export. The first phase, which recently obtained a final investment decision, will have a total export capacity of 3.5 mt/year. The second phase, which requires major improvements to the network, would increase capacity to 12 mt/y.
No risks seen for pipeline
IEnova said the marine pipeline it co-owns with Canada's TC Energy is operating normally and that it is under no risk of being interrupted, as one of the analysts on the call mentioned rumors in the Mexican press that the permit for the pipeline might be canceled over pending payments.
The pipeline is operated by TC Energy and there are administrative "issues," but there is nothing investors should be concerned about, Ortiz Mena said.
"It is under no risk of being interrupted in any way," she said.
Changes to hydrocarbons law
Ortiz Mena mentioned that recently passed changes to the country's hydrocarbons law could have implications for companies like IEnova that hold permits to store liquid fuels.
She said the law is too broad in its current form and that secondary laws are needed in order to correctly assess its impact on the company's operations.
Mexico's upper and lower houses of Congress approved the modifications, but the president has yet to sign them into law. Secondary laws are expected in the following months.
