Energy reform critic AMLO elected in Mexico

Leftist politician Andrés Manuel López Obrador (AMLO) achieved a landslide victory in Mexico’s general elections on Sunday, and will be sworn in on December 1, local media have reported.

Preliminary results revealed on Monday morning showed him leading with more than 53% of the vote and his rivals conceded on Sunday night.

AMLO has been a harsh critic of Mexico’s energy reforms, whose ongoing implementation began in 2014. During his campaign, the presidential hopeful often made statements indicating his intentions to roll back more recent legislative changes aimed at opening the domestic energy industry to foreign and private players, and attracting higher levels of FDI.

In addition to slowing or stopping the E&P bidding round schedule put forth by the National Hydrocarbons Commission, the president-elect has stated several times that he would review E&P contracts signed under the reforms to ensure they did not harm the interests of the country.

AMLO would also like to reorient Mexico’s energy strategy with a focus on ramping up refining and gas production capabilities. To do this, he has proposed building one or two more refineries, and shoring up gas infrastructure. In 2017, the country’s refining throughput reached just 49.6% of capacity, while gas imports – mainly from the USA – have dramatically increased, reaching a peak of 48.7 bcm (1.72 tcf).

The politician’s energy platform has been popular among many Mexicans, who continue to pay relatively high prices for electricity and fuel in the reformed market. AMLO has promised a three-year freeze on petrol and diesel prices.

Rocío Nahle García, AMLO’s choice for energy secretary, is in favour of moving in the direction of cleaner and renewable energy to reduce Mexico’s dependence on gas-based power. As such, the new administration has called for investments worth USD 1.9 billion to bring 1.07 GW of hydroelectric generation capacity on stream by 2025.