Mexico plans US$16bn investment to boost oil production, power generation

The Mexican government has unveiled a US$16bn investment plan to boost the domestic oil production, refinery capacity and hydropower generation. US$9.5bn will be invested in 2019 to upgrade existing refineries, build a new one for US$8.6bn in Dos Bocas in the state of Tabasco and increase oil exploration.

The country's crude oil output is flagging and declines to 1.88 md/d in the first half of 2018 down from 3.4 mb/d in 2005 and the government plans to add 600,000 bbl/d in the next two years to reach 2.5 mb/d. The main drivers behind this decline are the natural depletion of oil fields and a lack of investment. In 2018, Mexico imported 590,000 bbl/d of gasoline and 232,000 bbl/d of diesel from the Unites States while the domestic output has halved since 2013.

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Israel passes law to break-up monopoly of state-run power utility IEC

The Israeli cabinet has passed a law approved by the government in June 2018 which opens the domestic power sector to competition for private electricity producers and breaks up the monopoly held by the state-run power utility Israel Electric Corporation (IEC). This is the final chapter of a reform which began in May 2018, when IEC, the government and the main trade union Histadrut agreed to launch the process.

IEC has been managing the domestic power supply chain for decades but has agreed to sell five of its power plants over the next five years and will set up a new subsidiary for the development of two new power stations projects, which are yet to be built. IEC's system management and planning unit will be sold to another government-owned company, but the state power utility will retain its power distribution monopoly. However supply will be gradually opened to competition.

In recent years, the Israeli power generation market has been opened to competition and independent power producers (IPPs), such as Edeltech, IC Power or Dalia Power Energies, operate more than 3 GW, i.e. more than 20% of the total installed capacity.

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