Rising natural gas prices in North America could put pressure on margin and requirements working capital of the Federal Electricity Commission (CFE), Fitch warned on Wednesday.
“CFE is subject to shortages and fluctuations in natural gas prices and exchange rates. Until September 2023, the CFE covered 32% of its fuel needs, and by December this percentage was expected to approach 40%,” he noted in a brief report.
The agency said the “spot” price of natural gas from the Henry Hub, a major source of information in the United States, rose sharply on Jan. 12, ahead of the winter storm. at $13.2 per million British thermal units (MMBtu), above the 2023 price of $2.52.
This could impact electricity generation in Mexico. whose matrix is primarily thermal, with 62% of its energy produced in gas-fired power plants, according to Fitch.
Despite this, the firm expected the impact now to be less than during the historic winter storm in February 2021, when almost 5 million Mexicans in the northern states of the country were left without power due to cold weather in Texas (USA), where HE suspended supplies of natural gas used to generate electricity.
At the same time, he clarified that “the transfer of the increase in fuel costs is not immediate, since The adjustment of tariffs for the end consumer is mainly gradual.”
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“The company’s profitability and cash flow are expected to be negative impact from rising natural gas prices“Although to a lesser extent than in 2021,” he believes.
The report comes after President Andrés Manuel López Obrador admitted this Monday that there is “definite energy emergency” due to cold in US, where an ice wave could disrupt the supply of gas used by Mexico’s power plants.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
