PEMEX Petróleos Mexicanos : Will Receive Proposals for the Open Season on Storage and Duct Transportation

• ​A Workshop on Preparedness for the Open Season was Taught

With the purpose of reaching out to its customers and clarify doubts surrounding the Open Season for duct storage and transportation services, Petróleos Mexicanos organized its first workshop on preparedness, aimed at the companies interested in participating in this process.

In the meeting, which took place today in the Auditorio 18 de Marzo, Pemex officials offered the participants an overview of the calendar of this season, on the Pemex Logistics operating model, as well as on the bidding processes for the reserve of capacity of the infrastructure that will be made available to the market.

During the opening of the workshop, the head of Pemex Logística, Roberto Revilla Ostos, indicated that the main goal of this subsidiary productive company is to achieve the total satisfaction of the users, offering its efficient services with competitive and fair prices. From this Open Season, he added, a successful business relationship between both parties will begin.

He explained that the current regulations in force establish that an open season must take place, where any participant who complies with the necessary requirements established by the Energy Regulation Commission (CRE) may take part.

This workshop allowed the interested users to immerse themselves in the elements, both technical as well as regulatory, which, under the criteria that are dictated by the CRE, exist for the reserve of capacity, thus ensuring their successful participation in the Open Season.

He also detailed how the capacity adjudication process through auction will proceed, which will facilitate the correct application of a commercial strategy on the part of the users.

Since the past 20th of December, Pemex opened an application period for the interested parties, with a minimum set of formal requirements, with which a data room may be accessed, containing the necessary information to aid decision- making and thus facilitating the preparation of proposals to participate in the auction process.

Starting tomorrow Wednesday, and until February 10, the favorably prequalified applicants may submit proposals with financial postures for the assets they are interested in reserving. In a first stage, the capacity will be assigned to the interested parties, based on the greatest net current value of the bids that exceed the reserved rate which will be determined and saved, unpublished, by the CRE.

In case the demand for capacity should exceed the offer, a process called 'Countdown Auction' will be carried out, which consists in starting with a base fee, from which the auctioneer will increase its value. As the rate increases, the bidders will, in real time, reduce their demand for capacity, until it matches that being offered, thus balancing the market.

It is important to bear in mind that thanks to the Energy Reform, Pemex will, for the first time, be able to offer this storage and transport infrastructure to third parties.

Under the guidelines issed by the CRE, this opening will be performed by means of a transparent and competitive procedure, where any market participant may contend for the required infrastructure, using an auction mechanism.

The auction process will be carried out between February 10 and 14 this year, and final assignations will be made official on February 15. Prior to this process, the CRE will authorize Pemex Transformación Industrial to reserve the sufficient capacity to guarantee the national supply during this transitional stage, whereby the remaining capacity will be offered up through this auction mechanism.