On April 30, 2014, the Federal Government submitted to Congress a package of nine new laws and twelve energy statutes to be amended "supplemental laws", resulting from the recent changes to Mexico's Federal Constitution with respect to the energy reforms.
The amendments to the Foreign Investment Law are proposed for a dual purpose: (i) reflect the new constitutional framework in the law for areas of strategic importance, and (ii) encourage foreign investment in the industry to strengthen the benefits of the reform.
Hydrocarbons exploration and production, as well as the planning and control of the National Electricity System, and the electricity transmission and distribution to the public, will remain strategic activities of the state, with the participation of the private sector.
Articles 4, 5, 6 and 7 of the Foreign Investment Law are amended so as to allow:
a) free foreign investment in the sale of gas and liquefied petroleum gas and the supply of fuel and lubricants for vessels, aircraft and railway equipment;
b) free participation in activities such as the use of vessels, coastal shipping, interior water navigation and shipping on the high seas as services to support hydrocarbon exploration and exploitation, and
c) free participation in pipeline construction for oil and its derivatives, as well as in drilling oil and gas wells. Also, the basic petrochemical industry is removed as a strategic area.
Starting on January 1, 2017, the Energy Regulating Commission (CRE for its acronym in Spanish) will grant interested parties permits for the sale of gasoline and diesel to the public and "Petroleos Mexicanos", its productive enterprises, subsidiaries and affiliates, may not condition their supply to entering into franchise agreements.
Starting on January 1, 2019, the CRE will grant interested parties permits for the importing of gasoline and diesel.
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