Texas outage: Mexico told to consume less power
Mexico’s president asked consumers on Thursday to use less electricity in the evenings as a measure to help overcome shortages of natural gas from Texas, which is seeking to ban exports of the fuel during freezing weather.
Mexico generates the majority of its power from natural gas, mostly imported from the United States. Latin America’s second-largest economy has reeled as imports via pipeline from Texas dropped by about 75% over the last week, causing billions of dollars of losses on power outages and factory closures.
The Mexican peso weakened as much as 1.32% on Thursday, leading losses across Latin American currencies in what analysts said reflected concerns about the economy. One forecaster warned the shortages could dent Mexico’s fragile recovery from pandemic restrictions.
“I call on all Mexicans to help us by consuming less,” President Andres Manuel Lopez Obrador said, suggesting people switch off extra lightbulbs during the peak evening hours.
“To be totally sure that our electricity system is maintained and that we don’t suffer from blackouts.”
On Wednesday, Texas governor Greg Abbott said no natural gas should be supplied out of the state before February 21 as it struggles to provide power during a rare cold snap, although it was unclear if he would be able to enforce the ban.
Lopez Obrador said Mexico’s foreign ministry was making diplomatic efforts to stop the ban, but said Mexico was not retaliating against Texas, which in 2020 exported goods worth some $89 billion to its neighbor.
Adding to the state’s misery, the weather jeopardized drinking water systems. Authorities ordered 7 million people — a quarter of the population of the nation’s second-largest state — to boil tap water before drinking it, following the record low temperatures that damaged infrastructure and pipes.
Water pressure dropped after lines froze and because many people left faucets dripping to prevent pipes from icing, said Toby Baker, executive director of the Texas Commission on Environmental Quality. Abbott urged residents to shut off water to prevent more busted pipes and preserve municipal system pressure.