Power magazine has published the article "Hydrocarbon Molecules Know No Borders: The U.S.-Mexico Natural Gas Dilemma," written by Akin Gump cross-border transactions partner Dino Barajas. The article looks at the legal and regulatory issues surrounding U.S. natural gas exports to Mexico.
Barajas writes that Mexico has become "increasingly dependent on natural gas imports from the U.S. to fuel its power plants." At the same, though, "escalating political rhetoric ... and the recent review by the Mexican government of previously executed pipeline agreements," has made the situation "more tremulous."
While private investors are now part of the contract process, Barajas observes that the current investment climate "has become less certain as the administration of President Andrés Manuel López Obrador announced that previously adopted energy reforms and agreements may need to be reassessed for overall market design and alleged irregularities."