The week ahead in LatAm energy

Brazilian NOC Petrobras is considering launching an IPO for its Rota 1, Rota 2 and Rota 3 pipelines linking the country’s pre-salt area with coastal facilities.

The move could contribute to Petrobras’ US$20-30bn divestment program and see it create a company to operate the pipelines. 

Petrobras expects to save around US$154mn this year with efficiency gains related to the use of “digital twins” technology, involving the development of a digital replica of every field.

Petrobras also published the rules for the lease of its LNG regasification terminal and associated infrastructure in Bahia state, with 11 firms registering for the process, including Golar Power, Repsol, BP, Shell and Eneva. 

Brazil's state-run power company Eletrobras estimates it could double 2020-35 investments if its much-debated privatization goes ahead.

If privatized, Eletrobras said it could invest 12.6bn reais per year instead of 6bn reais.

Argentina

President Alberto Fernández backtracked from a previously announced decision to expropriate troubled agribusiness and biofuels company Vicentin.

The move represents a major about-face by a center-left government that has had trouble balancing a pro-investment agenda with more state-focused economic policies. 

Fernández is widely known as seeking to project a centrist image and he was therefore sensitive to criticism from local and international media, as well as the country’s private sector. However, his change of mind on the controversial expropriation issue has sparked criticism among his administration’s leftist supporters.

Mexico

The energy ministry highlighted advancements at the controversial US$8bn Dos Bocas refinery, which is under fast-track construction with the goal to begin operations in June 2022.

Colombia

Market observers have warned the country must overhaul its contracting model for oil and gas field services if it wants to ensure a swift recovery following the COVID-19 pandemic.

The power regulator (Creg) published draft guidelines for the remuneration of service providers of individual photovoltaic solar solutions.

Jamaica

The government plans to issue a request for proposals in early 2021 to supply clean energy.

Chile

The number of projects admitted for processing by Chile’s environmental evaluation service (SEA) fell from 51 in June to 31 in July.

Energy proposals led the list with 11 projects. The biggest was the US$135mn San Andrés wind park in southern Araucanía region.