Federal Hydrocarbons Law

Last updated: 15 February 2022

The Law states the different attributions for key energy institutions in the Government of Mexico and regulates the entire hydrocarbons value chain.

The Ministry of Energy is in charge of providing and modifying exploration and production (E&P) allocations (Art. 6), while the National Hydrocarbons Commission (CNH) is in charge of the E&P contracts with operators, including the issuing of regulation on resource management and optimization (Art. 11 & 36). CNH will also host the National Center for Hydrocarbons Information with key information and statistics of the sector (Art. 35)

The National Center for Natural Gas Control (CENAGAS) is in charge of the management of the midstream and downstream natural gas value chain, to ensure open access to the infrastructure (Art. 66). On the other hand, the Energy Regulatory Commission (CRE) manages the energy market in the country, including permits for their trade (Chapter II). 

The Law also provides for the creation of the Agency for Industrial Security and Environmental Protection (ASEA) with the authority to develop regulations to guide the sustainable development of the hydrocarbons industry (Art 129).

The Law was amended on May 20, 2021. In general, it did not affect the terms at which the hydrocarbons sector operates, however, it gave more authority to the federal government towards the suspension of permits, for example, given national security concerns. Also, it included a requirement, as part of the issuing of permits for mid and downstream, to prove storage capacity based on legal dispositions set by the Ministry of Energy. 
For more information: http://www.diputados.gob.mx/LeyesBiblio/pdf/LHidro_200521.pdf

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