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Mexico's CFE to buy 360,000t of coal to fuel plants -Director



By Argus

Petroleumworld 03 22 2019

Mexico's state-owned power company CFE will buy 360,000t of coal from Coahuila state producers to fuel two plants in that state's Nava municipality, senate energy commission president Armando Guadiana said.

The announcement comes after a 30 January comment from state governor Miguel Riquelme, who said CFE would resume coal purchases and buy a total 400,000t from local producers after halting purchases in December.

CFE director Manuel Bartlett said yesterday he did not meet with Guadiana on 19 March when the announcement was made but did not deny the purchase plans.

Mines in Coahuila have by far the country's largest coal production by volume, according to Mexico's geological society SGM. Total domestic coal output was 7.23mn t in 2017, 11pc less than 2016.

Mexico imported 10.4mn t of coal for power generation in 2017, according to energy ministry Sener. Total coal imports totaled $815mn in 2017.

Mexico's coal-powered installed capacity reached 7.1pc of the total by end-2017, according to the latest data from energy ministry Sener.

The country has three coal plants, a 2.8GW plant in Guerrero state and the two in Coahuila that would receive the purchases, which amount to 2.4GW of capacity.

Coal-fired power generation decreased to 9.3pc of the national total in 2017 from 12pc in 2007.

Sener under the previous presidential administration forecast a 12pc reduction in coal-installed capacity by 2032. But Sener officials under President Andres Manuel Lopez Obrador, who took office on 1 December, have supported coal as a means to increase power generation in the short term.

In November of last year, Guadiana of the majority Morena party said the new administration envisioned developing two 700MW coal plants citing cheaper generation costs in an effort to reduce Mexico's dependency on US natural gas imports.

Coal emits 200lbs of CO2/mmBtu and natural gas some 120lbs.

In 2016, Mexico used over 16mn t of coal to fire plants.





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