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Monterrey Private Sector Calls Off Investments for US$900 Million

Admin | 13.05.2013

The new agreements on natural gas prices in Mexico did not prevent Nuevo Leon-based companies from cancelling investments between US$800 and US$900 million, Alvaro Fernandez Garza, Chairman of the Mexican Chamber of Processing Industry, Nuevo Leon Chapter, informed.

The new agreements on natural gas prices in Mexico did not prevent Nuevo Leon-based companies from cancelling investments between US$800 and US$900 million, Alvaro Fernandez Garza, Chairman of the Mexican Chamber of Processing Industry, Nuevo Leon Chapter, informed.

“I have no information (on cancelled investments) for the rest of Mexico, I may only speak about local projects, companies I know well; we are speaking about US$800 to US$900 million”, Mr. Fernandez pointed-out.

After a Board of Directors meeting, Fernandez said that the cancelled projects were related to electric power co-generation.

However, he assured that if the Energy Reform is passed this year and federal authorities build the infrastructure they have announced, investment plans could be reactivated late this year.

“If in addition to solving the transportation problem (with new infrastructure), notwithstanding where you bring gas from, either Texas, northern Coahuila or Nuevo Leon, if the Energy Reform is approved by the end of this year, (private) investment may be immediately reactivated”, he emphasized

Fernandez Garza regrets that industry in Mexico should suffer from natural gas shortage, when advantage could be taken of current competitive prices, which companies elsewhere in the world would like to have.

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