On Wednesday March 30, 2017, the North American Energy Standards Board (“NAESB”) Wholesale Gas Quadrant (“WGQ”) Contracts Subcommittee voted to move forward with the development of a Mexican Addendum to the NAESB Base Contract for the Purchase and Sale of Natural Gas. Developing a Mexican Addendum should make Mexico a more desirable market for natural gas trading by providing greater certainty about the legal structure of gas trades.
As part of the 2017 NAESB WGQ Annual Plan, the WGQ Executive Committee proposed, and the Board approved, a proposal to review whether to develop a Mexican Addendum. In December 2016, WGQ members voted not to pursue a Mexican Addendum. However, that meeting was not well-attended and several parties who had advocated for creating a Mexican Addendum were not present.
On Monday, November 14, 2016, Sidley Austin LLP Partner Ken Irvin discussed planning and coordinating international gas pipelines and infrastructure at this year’s annual Platts Mexican Energy Conference in Mexico City, Mexico. Ken was joined by Javier Gutierrez, Subdirector, Modernization and New Areas of Opportunity with Mexico’s state-owned electric utility Comisión Federal de Electricidad (“CFE”). (more…)