Mexico unveils energy reform draft laws

Mexican government on Wednesday unveiled energy reform legislation proposals designed to regulate the opening up of the country's long-nationalized energy sector to foreign investment. At a joint press conference held in Mexico City, the national capital, Wednesday, ministers of Finance, Luis Videgaray, and of Energy, Pedro Joaquin Coldwell, presented the package of 21 draft laws, including new and modified regulations, which will be sent to both houses of Congress for debate and approval. The law proposals allow foreign companies to participate, for the first time since 1938 when the energy sector was nationalized, in the national energy industry, including in exploration and production. Foreign companies will not yet be able to operate filling stations in Mexico, where the state oil company Pemex controls all gas stations, but will gradually be allowed to do so, Coldwell said. The government's decision to open the energy sector to foreign competition has generally lacked popular support, and one of the ways officials have tried to gain their backing has been to promise lower utility costs. Coldwell on Wednesday reiterated that promise, saying the price of natural gas and electricity will come down in "the medium term. " "Light bills will be lower in no more than two years after the legislation takes effect," Coldwell added.