VIEW FROM THE TOP
SIMPLIFIED PROCESSES FOR GREATER GROWTH NARCÍS DE CARRERAS Country Manager Mexico of Gas Natural Fenosa
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Q: How does Gas Natural Fenosa make the most of its
Q: How is Gas Natural Fenosa capitalizing on its tenure and
global footprint in the Mexican natural gas market?
expertise applied to renewable energy projects?
A: 2018 will mark Gas Natural Fenosa’s 175th year in business.
A: Through our client-based focus, we dedicate ourselves
Throughout its lifespan, the company has grown based
to supplying our 25 million clients worldwide the best
on its natural gas distribution business. As we underwent
combination of energy costs, energy supply security and
acquisition, incorporations and global market entries, Gas
an environmentally-friendly portfolio as a final business
Natural Fenosa considerably diversified its business lines.
strategy. Competition in the renewables business, not only in
To date, our company has consolidated four main business
wind power but also solar, is increasingly aggressive, making
branches: gas distribution networks, electricity distribution
these sources mandatory to inject added competitiveness
networks, natural gas commercialization and electricity
into our power generation portfolio these last few years.
generation, with our clients at the center of it all, as our
It is a general trend observable not only with Gas Natural
primary, downstream focus. This is our global model, which
Fenosa but also among other integrated players involved
we can deploy either in its entirety for some countries such
in the same business as ours.
as Spain while in others, the number of business branches we develop depends on market conditions.
Q: What new business opportunities unlocked by the reform is Gas Natural Fenosa planning to take advantage of?
In Mexico’s case, electricity distribution is still primarily
A: Our priority remains focusing on the growth of our core
in government hands. Gas Natural Fenosa entered the
business in natural gas distribution. CRE’s last public tender
Mexican downstream gas distribution market in 1997
prior to the Energy Reform for natural gas distribution
when it opened to private initiative, winning successive
zones in Sonora and Sinaloa was awarded to us, in 2014
distribution zone tenders and fostering our growth. We
and 2015. We want to grow in parallel to these zones.
incorporated electricity generation in 2001 through PPA
The reform’s new rules and sector growth priorities have
projects with CFE. In 2014, we integrated renewables
simplified the process considerably. Competitive and public
into our portfolio and the Energy Reform unlocked the
tenders are no longer required to grow. We have requested
possibility of launching our natural gas commercialization
permits to expand in Campeche, Yucatan, Quintana Roo
branch, effectively deploying all four of our business lines.
and Tabasco. We are already permit-holders for the latter. This simplification process fosters a considerable boost for
Q: Why did Gas Natural Fenosa choose green bonds to
Mexico’s downstream natural gas distribution sector and is
finance its renewable energy portfolio?
in line with one of the core objectives of the reform, which
A: Gas Natural Fenosa issued its first green bond in
is magnifying natural gas and renewable use in Mexico.
November 2017 on an international scale as part of its strategy to diversify its financing portfolio. In Spain, we were
Q: What is your assessment of the potential of Vehicular
awarded some bids throughout 2017 in renewable energy,
Natural Gas (VNG) applications in Mexico?
enabling us to conclude this issuance with resounding
A: Vehicular natural gas is a complement; a new use for natural
success. These additional funds will be exclusively allocated
gas within our distribution network business. Gas Natural
to the renewable energy projects we won.
Fenosa has been present in this new subsector since 2004 with two vehicular natural gas service stations in Monterrey. Prior to the reform, developing this particular application
Gas Natural Fenosa is a Spanish private utilities company
was especially complex as all service stations were owned
specialized in generation, commercialization and distribution
by PEMEX and the business was not liberalized. Now, the
of electricity and natural gas. Its global presence spans over
potential for vehicular natural gas is on the rise and enjoys
30 countries with a portfolio of over 25 million clients
renewed interest from private players. In our case, we are
