Mission Statement

Natural Gas Technology/Power Plant Retrofitting

Business Development Mission to Mexico

September 10-14, 2000

Overview

The U.S. Department of Commerce is supporting President Clinton's International Clean Energy Initiative through the development of a dynamic trade promotion program which emphasizes the positive contribution that American companies and U.S. exports can make to a cleaner environment and energy efficiency.

The Department's Clean Energy Trade Initiative focuses on developing market opportunities for U.S. companies in the energy supply, manufacturing, commercial, residential, transportation, and environmental technology sectors.

The objectives of the Clean Energy Trade Initiative include: increasing the visibility of U.S. companies as global leaders in "clean energy" technology, deepening relationships with key developing country policymakers, participating in the policy dialogue (regulatory reform, privatization, etc.) with government officials, expanding communications with private sector organizations, trade promotion, and long-term market development.

Mission Description

This mission will promote the export of U.S. natural gas and natural gas technologies to Mexico. It will take place in September, 2000 in Mexico City and Monterrey, Mexico and will be led by the Deputy Assistant Secretary for Basic Industries or a designee. Mission participants will include representatives from the U.S. natural gas; power plant design engineering and construction; utilities; and cogeneration technologies industries interested in entering or expanding their presence in Mexico's natural gas market.

Commercial Setting

In August, 1999, Mexico zeroed out its natural gas import tariff, thus opening its domestic natural gas market to greater U.S. imports. In January, 2000, the Mexican Government announced that $400 million needs to be spent this year to boost Mexico's natural gas production. The driving force behind these changes is Mexico's rapidly growing electricity demand, which grew by 5.2 % in 1999. Mexico's Secretary of Energy, Dr. Luis Tellez, says that Mexico needs to add 21,743 megawatts (MW) of installed power generation capacity by 2007 in order to keep up with this growth. Much of this new power generation capacity, with approximately 20 independent power producer projects (IPPs)to be internationally tendered, will be fueled by natural gas.

Mission Goals

The mission will seek to increase the commercial presence of the U.S. natural gas industry in Mexico by targeting Mexico's growing need for natural gas imports; natural gas and fuel switching technologies; natural gas field development and infrastructure; natural gas power generation plant construction and retrofitting; and cogeneration technologies. The mission will further U.S. commercial policy objectives and advance U.S. natural gas industry interests in Mexico.

Mission Scenario

The mission will visit Mexico City and Monterrey, Mexico. It will focus on advancing the U.S. natural gas industry's export opportunities. The mission will expose the delegation to:

• Meetings with senior level government officials at the Comision Federal de Electricidad (CFE) and PEMEX, Mexico's electricity and hydrocarbons monopolies.
• Meetings with current natural gas and power generation industry concessionaires of CFE and PEMEX.

This mission will be an excellent opportunity to promote U.S. natural gas commercial interests, gather in-depth information on the Mexican natural gas import market and to meet with key decision makers at CFE and PEMEX.

Timetable

The mission will occur on September 10-14, 2000. The mission's precise schedule will depend on the availability of CFE and PEMEX officials, as well as the specific goals and interests of the mission participants.

Criteria for Company Participation

Eligibility

Participating companies must be incorporated in the United States.

A company is eligible to participate only if the products and/or services that it will promote on the relevant mission are either (a) manufactured or produced in the United States; or (b) if manufactured or produced outside the United States, are marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Selection Criteria

Companies will be selected on the basis of:

• Ability to produce natural gas in the U.S. -or- A capacity to deliver relevant goods or services to Mexico.



• Consistency of the company's market development goals with the scope and desired outcome of the mission as described.



• Past, present, or prospective business in Mexico.



• Diversity of company size, type, location, demographics, and traditional under-representation in business.



• Timely receipt of signed mission application, participation agreement and participation fee of $3,000, and $500 for each additional representative.



• Whether the company's overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission's foreign and commercial policy objectives.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and broadcast fax, e-mail, notices by industry trade associations and other multiplier groups, and at industry meetings, symposia, conferences, trade shows, etc.

An applicant's partisan political activities (including political contributions) are irrelevant to the selection process.

Applications

Application deadline: June 1, 2000. Applications may be submitted immediately to

Sam Beatty, Energy Division - Basic Industries, U.S. Department of Commerce, Room H4054, Washington, DC 20230; Telephone: (202) 482-4179; Facsimile: (202) 482-0170 or 5361; Internet: Samuel_Beatty@ita.doc.gov

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