Mexico energy sector regulatory and permit issues

Mexico’s energy sector is navigating complex regulatory landscapes involving both traditional fuel imports and emerging biofuel projects.

In one instance, the Ministry of Energy (Sener) authorized fuel import permits for Portacelis Gas and Oil, a company established only 52 days prior to the authorization. This permit was issued despite new regulations implemented just nine days earlier that required importers to demonstrate a two-year history of foreign trade to prevent tax fraud. Following the authorization, tax authorities alleged the company engaged in “huachicol fiscal” by under-declaring fuel volumes, leading to claims for 834 million pesos in unpaid taxes.

Simultaneously, the biofuel sector faces delays despite the government granting eight permits for the production and distribution of various biofuels. While Sener has issued permits, a lack of secondary regulations and technical standards from other federal agencies—such as Semarnat, Sader, and the SAT—has stalled over $130 million in potential projects. These delays involve the development of technical standards for fuels like biomethane and bioethanol, as well as guidelines for integrating biomethane into natural gas networks.