(Adds more detail about Pemex's expansion plans)
By Valerie Volcovici
WASHINGTON, April 24 (Reuters) - While energy reforms haveopened the door for Mexico's state-run energy company to expandoverseas, its focus for now will be on developing its"low-hanging fruit," the head of Pemex said on Thursday.
Pemex Chief Executive Emilio Lozoya spoke in Washington,D.C., at the annual conference of the Export-Import Bank, theofficial U.S. export credit agency, on a panel discussing thenext frontier of investment opportunities.
Lozoya, a 39-year-old Harvard graduate, touted the potentialbenefits of Mexico's massive energy reform to Mexico's economy,the central American region and the United States.
Last year, Lozoya said Pemex would set up a new company in abid to gain production experience in the United States, in bothshale and deep water projects, but the company has yet to do so.[ID: nL2N0GK0FW]
Pemex currently has a 50 percent stake in the Deer Parkrefinery outside Houston, Texas, via a joint venture with RoyalDutch Shell Plc.
For now, however, Pemex remains focused on attracting U.S.companies interested in Mexico's untapped potential.
"In Mexico there are many reserves that are accessiblecompared to other parts of the world. That does not mean thatPemex will not go international at some point, but right now theeasier opportunity is in Mexico," he said.
He said Mexico's massive but aging energy sector "needs thehundreds of companies that are trading in the United States tocome to Mexico."
Not only would that give Mexico a much-needed boost, but it would be a job creator for the United States, Lozoya said.
Signed into law late last year by President Enrique PenaNieto, Mexico's energy reform allows for new contractual optionsfor Pemex, as well as foreign or private oil companies,including production-sharing contracts and licenses.
So-called secondary legislation that will set commercialterms for the contracts and other regulations is expected to beapproved by Mexico's Congress in May.
Lozoya added that the shale gas boom in the United Statesalso opens up a window of opportunity not only for Mexico, butfor Central America as well.
Various infrastructure projects in the works will allowMexico to tap into the bounty of natural gas in the UnitedStates, which will transform Mexico's economy, he said.
"This will mean that we will go from consuming 6 percent ofthe total electricity in Mexico to producing 15 percent of it,"he said, adding that it will move the country away from areliance on expensive fuel oil.
"The impact on the economy will be great," Lozoya said,noting that the energy reform is expected to increase investmentin Mexico to $50 billion to $60 billion per year.
The economic impact could also be felt further south inCentral America, where natural gas is priced around $20 perthousand British thermal units, compared with roughly $4.50 inthe United States.
"If Pemex together with its partners builds the energyinfrastructure to bring this cheap feedstock to Central America,we will create economic opportunities in Central America," hesaid, noting this could also reduce the major drivers ofemigration.
(Reporting by Valerie Volcovici; additional reporting by DavidAlire Garcia in Mexico City; Editing by Dan Grebler)
