Abstract
ABSTRACT Upon the election of Andres Manuel Lopez Obrador (AMLO) on 1 July 2018, the vitality of Mexico’s recent Energy Reform came under fire from investors, policy makers and industry professionals. This paper evaluates the risks posed to investors in cross-border pipeline projects as a result of this regime shift. Risk is evaluated by the present factors that affect investment conditions as well as projections into the future state of the Mexican Energy Reform. An evaluation of the current Mexican natural gas policy and Mexico’s natural gas relationship with the United States demonstrate a high demand for cheap natural gas flowing across the U.S.-Mexico border. While factors such as social insecurity, theft, environmental concerns, and political volatility slowed the development of several cross-border pipeline projects, the presence of newly minted projects on the horizon are a sign that the expansion of Mexico’s pipeline infrastructure is likely to endure.
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