International Energy Law - PEMEX Gas y Petroquimica Basica
In the mid 1990s PEMEX was reorganized, and Crowell & Moring became, and served for three years as, the general outside counsel to PEMEX Gas y Petroquimica Basica (PEMEX Gas), the autonomous business unit of PEMEX responsible for all natural gas, LPG, and basic petrochemicals in Mexico. This work involved the commercial and financial aspects of all PEMEX Gas projects, investments, and contractual relationships.
As general outside counsel to PEMEX Gas, we worked on all significant gas and petrochemical matters. Initially, a great deal of work was required on issues related to accounting of assets and liabilities among the various PEMEX entities, transforming the PEMEX business operations into more conventional commercial relationships, advising on energy policy options available to restructure PEMEX, and developing creative financial and legal mechanisms to facilitate various project objectives, including the potential disposition of certain PEMEX assets.
On natural gas matters, we analyzed, negotiated, and prepared PEMEX Gas natural gas purchase and sale agreements, both domestically and internationally, and we prepared natural gas transportation contracts for routine transportation as well as for major transportation associated with very large capital projects, such as 600,000 and 900,000 mmbtu/d. These major transportation contracts involved critical security and financing terms, rate design and return considerations, minimum bill and demand charge components, nominations and balancing processes, dispute resolution mechanisms, as well as affiliated relationships with production, gathering, and processing interests.
We also handled large capital investment bidding processes, contract negotiations and drafting, and project development for, among other things, LPG pipeline projects, LPG terminals and related facilities, LPG and sulfur transportation by seagoing vessels, sulfur storage and sales, natural gas processing facilities, MTBE facilities, pipeline route feasibility analyses, and the assessment of environmental implications of numerous projects. Several of these matters required that project documents be prepared to facilitate non-recourse project financing.