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Mexico to spend $16bn on energy infrastructure

11 May 2015

Mexico’s state-owned power company, Comision Federal de Electricidad, expects $16.6 billion will be spent on infrastructure over the next few years as the nation opens up to outside investment.

The infrastructure is expected to include 14 natural gas pipelines, 14 renewable energy projects and six combined-cycle natural gas generation plants.

In 2013, legislation was approved to open up Mexico’s oil and power markets to foreign investors. Blackstone Group LP and other power producers have applied to ship electricity across the border from Texas to meet Mexico’s needs, whilst Blackrock Inc. and First Reserve Corp are buying stakes in gas pipelines owned by state oil company Petroleos Mexicanos.

These projected costs demonstrate the growth that the country will see in terms of energy infrastructure.