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Recent changes have been implemented in the Regulatory Act to Article
27 of the Constitution of Mexico in regard to petroleum products.
These changes, along with the issuance of two new instruments of
regulation, the Regulatory Energy Commission Act (RECA) and the
Natural Gas Regulation (NGR), have provided the new legal framework
for private individuals when providing services related to the transportation,
distribution and storage of natural gas. Private individuals may
now build, operate and own pipelines, facilities and equipment.
These activities were formerly reserved exclusively to the State
and Federal Government and its agencies.
Regulation is carried out by the Secretariat of Energy, though
this task is mainly done through the Regulatory Energy Commission
(Comisión Reguladora de Energía). This Commission is an organ
of the Secretariat of Energy which has technical and operative autonomy
and constitutes the highest authority on natural gas matters in
Mexico.
Private individuals and the private sector may participate in the
development of services related to the transportation, distribution
and storage of gas by obtaining a permit. These permits have a sui
generis nature similar to a contract entered into with the public
administration.
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