Spanish companies have been in Mexico for years with a very prominent presence in the hydrocarbon sector.
Today, the Mexican Constitution and the Hydrocarbons Law allow other oil and gas companies, in addition to Pemex, to carry out certain activities related to the energy sector in Mexico, including exploration and production activities, and the import and sale of gasoline.
As a result, Pemex faces competition for the right to explore and develop new oil and gas reserves in Mexico.
Pemex also faces competition in relation to certain refining, transportation and processing activities.
According to Icex, the body that promotes exports and investments in Spain, due to the large number of Spanish projects and companies, it is not possible to make an exhaustive analysis of all of them, so in a report it gives only a few relevant examples in the different areas of activity.
To begin with, CEPSA and REPSOL are particularly relevant, since they are present in many of the links in the value chain.
On the one hand, REPSOL has been the winner of several blocks in oil round 2.1, 2.4 and 3.1 and has 6 offshore blocks in the Gulf of Mexico (upstream industry).
In addition, this company participates in three storage projects in association with other companies in Tuxpan, the State of Mexico and Jalisco (midstream industry) and has also opened more than 200 gas stations in Mexico (downstream industry).
Likewise, in 2018 it entered into an alliance with Bardahl to manufacture and market its lubricant products in Mexico.
On the other hand, CEPSA has been the winner of several contracts in the 3.1 oil round with a shallow water project in the Tampico-Misantlar basin (upstream industry) and is present in the downstream industry with 150 gas stations.
In the midstream industry there are other Spanish companies such as Iberdrola, which has interconnection projects in its portfolio with the Ingeniero Antonio M. Amor refinery, or CLH, which has projects for the construction of storage terminals in the Valley of Mexico.
Other Spanish companies also participate in the dowstream industry thanks to contracts for works and services of all kinds with PEMEX.
Airtificial or Técnicas Reunidas are present in the Dos Bocas refinery projects.
Sener and OHL participate in projects at the Francisco I Madero refinery and ACS is in projects related to the Tula refinery.
In addition to CEPSA and Repsol, Avia has entered the distribution of gasoline in Mexico with the opening of 40 service stations.
In the gas industry, ACS was awarded three natural gas projects in the auctions in 2017 and has a gas compression services contract in the Sonda de Campeche.
At the same time, Enagás has participated in different projects, mostly in consortium, such as the construction of the Morelos gas pipeline with Elecnor, the TLA Altamira regasification plant or the Soto La Marina compression station.
Técnicas Reunidas is executing a low sulfur diesel project at the General Lázaro Cárdenas Refinery in Minatitlán and Naturgy is present in the industry as a gas distributor.
According to Pemex, increased competition could make it difficult for it to hire and retain qualified personnel.
While Pemex has not yet experienced significant adverse effects due to increased competition, it cannot guarantee that it will not experience such adverse effects in the future.