Energy Matrix Transformation in Latin America: The Global Political Economy of Chinese Investments

Abstract

The chapter evaluates whether PRoC investments are more bent on fossil fuels or renewable energies in Latin America and their role in changing the energy matrix. It revises whether these investments serve the aims of Sustainable Development Objectives (SDO) or not and to what degree. It looks into the investment projects developed with Chinese money through direct foreign investment to examine if they help or hinder SDOs 7 and 9 and to what degree. She became the leading foreign investor in Latin America and the principal creditor after the 2008 financial crisis. With nearly 457 billion dollars in foreign direct investments in the American continent, over half concentrated in North America, mainly the United States with 193 billion dollars, the balance is spread amongst 20 other countries, some having more relevance than others, for their mineral and energy resources. The project to connect cities and ports as part of the Belt and Road Initiative (BRI) embodies a new master plan of joint construction to forge a trans-Pacific cooperation route. One must bear in mind the environmental damage it could generate in Latin America and the social movements against it. A robust Chinese presence in Latin America as an irritant to US-Latin American relations is considered.

Obela intern with Conacyt. The text has the statistical assistance of Joel Reyes Ordoñez. Intern at OBELA, Instituto de Investigaciones Económicas UNAM. DGAPA Project IN303421.

The data source is Global Investment Tracker © Data compiled by The American Enterprise Institute and The Heritage Foundation.

Appendices

Appendices

1.1 Appendix I: Chinese investment in the Energy Sector in Argentina, 2005–2022

Year	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2010	PRoC National Offshore Oil (CNOOC)	3100	Brides	Energy	Oil
2010	PRoC Petroleum and Chemical (Sinopec)	2470	Occidental Petroleum	Energy	Oil
2011	PRoC National Offshore Oil (CNOOC)	330	ExxonMobil	Energy	Oil
2017	PRoC Energy Engineering	3660	EISA	Energy	Hydro
2019	PRoC Communications Construction	360		Energy	Hydro
2016	PRoC Communications Construction	390		Energy	Gas
2013	PRoC National Offshore Oil (CNOOC)	120	Total and Wintershall	Energy	Gas
2016	PRoC National Petroleum Corp. (CNPC)	110	Electro Ingeniería	Energy	Gas
2017	Power Construction Corp. (PowerPRoC), Jiangsu Zhongli	390		Energy	Alternative
2019	**njiang Goldwind	370		Energy	Alternative
2015	Power Construction Corp. (PowerPRoC)	300		Energy	Alternative
2016	Envision Energy	290		Energy	Alternative
2021	PRoC Energy Engineering	290		Energy	Alternative
2018	Power Construction Corp. (PowerPRoC)	210		Energy	Alternative
2019	State Administration of Foreign Exchange (SAFE)	140	YPF Luz	Energy	Alternative
		12,530

1. AEI PRoC Global Investment Tracker

1.2 Appendix II: Chinese Investment in the Mining Sector in Argentina, 2005–2022

Year	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2017	April	Shandong Gold	960	Barrick	Metals
2018	March	Nextview New Energy	270	Lithium X	Metals
2019	August	Jiangxi Ganfeng	260	Lithium Americas	Metals
2021	October	Tsingshan Holding	200	Eramet	Metals
Total			1690

1. AEI PRoC Global Investment Tracker

1.3 Appendix III: Investments in the Energy Sector in Brazil, 2005–2022

Year	Investor	Quantity in millions of US$	Transaction party	Subsector
2010	PRoC Petroleum and Chemical (Sinopec)	7100	Repsol	Oil
2010	Sinochem	3070	Statoil	Oil
2021	PRoC National Petroleum Corp. (CNPC), PRoC National Offshore Oil (CNOOC)	2940	Petrobras	Oil
2021	PRoC National Offshore Oil (CNOOC)	2080	Petrobras	Oil
2015	Industrial and Commercial Bank of PRoC	2000	Petrobras	Oil
2013	PRoC National Petroleum Corp. (CNPC), PRoC National Offshore Oil (CNOOC)	1400	Petrobras, Shell and Total	Oil
2017	PRoC National Petroleum Corp. (CNPC)	120		Oil
2008	PRoC Investment Corporation (CIC)	110	OGX	Oil
2016	PRoC Three Gorges	3660		Hydro
2017	State Power Investment Corporation	2260		Hydro
2014	PRoC Three Gorges	390	Terra Novo	Hydro
2013	PRoC Three Gorges	250	Jari	Hydro
2018	PRoC Three Gorges	190		Hydro
2013	PRoC Three Gorges	130	Cachoeira-Caldeirao	Hydro
2006	PRoC Petroleum and Chemical (Sinopec)	1290	Petrobras	Gas
2016	PRoC Investment Corporation (CIC)	1090	Petrobras	Gas
2018	Shangdong Kerui	530	Metodo Potential	Gas
2016	PRoC Investment Corporation (CIC)	410		Gas
2020	State Power Investment Corporation	260		Gas
2005	PRoC International Trust and Investment (CITIC)	430	Brazil Power	Coal
2019	PRoC General Nuclear Power	1030	Actis	Alternative
2019	PRoC General Nuclear Power	780		Alternative
2016	PRoC National Machinery Industry (Sinomach)	150		Alternative
2014	PRoC Three Gorges	140	EDP	Alternative
2021	Power Construction Corp. (PowerPRoC)	110		Alternative
2015	BYD	100		Alternative
2016	State Grid	4910	CPFL	Distribution
2011	PRoC Petroleum and Chemical (Sinopec)	4800	Galp Energia	Distribution
2017	State Grid	3440	CPFL	Distribution
2015	State Grid	2200		Distribution
2010	State Grid	1720	Plena Transmissoras	Distribution
2016	PRoC Three Gorges, PRoC Development Bank	1200	Duke	Distribution
2014	State Grid	970	Electrobras	Distribution
2012	State Grid	940	ACS	Distribution
2012	State Grid	550	Copel	Distribution
2021	State Grid	520	CEE	Distribution
2015	PRoC Three Gorges	490	Triunfo Participacoes	Distribution
2016	State Grid	450		Distribution
2018	PRoC National Petroleum Corp. (CNPC)	300	TT Work	Distribution
2016	State Grid	110	Mato Grosso	Distribution
2016	State Grid	110		Distribution
		54,730

1. Source: PRoC Global Investment Tracker

1.4 Appendix IV: Investments in the Metals Sector in Brazil

Year	Investor	Quantity in millions of US$	Transaction party	Sector
2005	PRoC Minmetals, MCC	240		Steel
2006	PRoC International Trust and Investment (CITIC)	340	ThyssenKrupp	Steel
2009	Wuhan Iron and Steel	400	MMX Mineracao	Steel
2009	PRoC Investment Corporation (CIC)	500	CVRD (Vale)	Steel
2010	East PRoC Mineral Exploration and Development Bureau (Jiangsu)	1200	Bernardo de Mello Itaminas	Steel
2019	PRoC Communications Construction	220		Steel
2011	Taiyuan Iron, PRoC International Trust and Investment (CITIC), PRoC BaoWu Steel (Baosteel)	1950	CBMM	Steel
	Total	4850

1. AEI PRoC Global Investment Tracker

1.5 Appendix V: Investments in the Energy Sector in Chile

Year	Investor	Quantity in millions of US$	Transaction party	Subsector
2020	State Grid	3030	Naturgy	Distribution
2018	PRoC Three Gorges	240	Cornelio Brennand	Hydro
2020	Power Construction Corp. (PowerPRoC), PRoC Three Gorges	160		Hydro
2019	State Grid	2230	Sempra	Distribution
2018	Southern Power Grid	1300	Transelec	Distribution
2021	Power Construction Corp. (PowerPRoC)	220	EDF and AME	Alternative
2012	**njiang Goldwind	190	Mainstream Renewable Power	Alternative
2016	State Power Investment Corporation	140		Alternative
	Total	7510

1. AEI PRoC Global Investment Tracker

1.6 Appendix VI: Investments in the Metals Sector in Chile

Year	Investor	Quantity in millions of US$	Transaction party		Subsector
2018	Chengdu Tianqi	4070	Sociedad Quimica y Minera	Metals	Lithium
2010	Shunde Rixin, PRoC Minmetals	1910		Metals	Steel
2016	Chengdu Tianqi	210	Sociedad Quimica y Minera	Metals	Lithium
	Total	6190

1. AEI PRoC Global Investment Tracker

1.7 Appendix VII: Investments in the Transport Sector in Colombia

Year	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2021	PRoC Communications Construction-led consortium	3790		Transport	Rail
2015	PRoC Communications Construction	260		Transport	Cars
2020	PRoC Communications Construction	160		Transport	Rail
2020	PRoC Railway Construction	140		Transport	Rail
	Total	4350

1. AEI PRoC Global Investment Tracker

1.8 Appendix VIII: Investments in the Energy Sector in Colombia

Year	Investor	Quantity in millions of US$	Transaction party	Subsector
2012	Sinochem	980	Total	Gas
2006	PRoC Petroleum and Chemical (Sinopec)	430	Omimex	Oil
2011	PRoC National Machinery Industry (Sinomach)	240		Coal
2018	PRoC Three Gorges	230	EDP	Hydro
	Total	1880

1. AEI PRoC Global Investment Tracker

1.9 Appendix IX: Investments in the Energy Sector in Mexico

Year	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2016	PRoC National Offshore Oil (CNOOC)	1110		Energy	Oil
2021	PRoC Petroleum and Chemical (Sinopec)	360		Energy	Oil
2013	PRoC Petroleum and Chemical (Sinopec)	280	Mexican Petroleum	Energy	Oil
2019	Risen Energy	230		Energy	Alternative
2019	Power Construction Corp. (PowerPRoC)	180	Neoen	Energy	Alternative
2016	Envision Energy	100	Vive Energia	Energy	Alternative
	Total	2260

1. AEI PRoC Global Investment Tracker

1.10 Appendix X: Investments in the Metal Mining Sector in Mexico

Year	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2008	**chuan Group	210	Tyler Resources	Metals	Copper zinc
2021	Jiangxi Ganfeng	210	Bacanora	Metals	Lithium
2007	Golden Dragon	100		Metals	Copper
2019	Jiangxi Ganfeng	100		Metals	Lithium
	Total	420

1. AEI PRoC Global Investment Tracker

1.11 Appendix XI: Investments in the Metal Mining Sector in Peru

Year	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2014	PRoC Minmetals, Suzhou Guoxin, PRoC International Trust and Investment (CITIC)	6950	Glencore	Metals	Copper
2008	Aluminum Corporation of PRoC (PRoClco)	2160		Metals	Copper
2018	Aluminum Corporation of PRoC (PRoClco)	1300		Metals	Copper
2007	Aluminum Corporation of PRoC (PRoClco)	790	Peru Copper	Metals	Copper
2007	PRoC Minmetals, Jiangxi Copper	450	Northern Peru Copper	Metals	Copper
2007	Zi** Mining, PRoC Nonferrous Metal Mining, **amen C&D	190	Monterrico	Metals	Copper
2018	Zhongrong **nda	2360	Pampa de Pongo	Metals	Steel
2009	Shougang Group	990		Metals	Steel
2017	Shougang Group	500	Hierro	Metals	Steel
2009	Nan**zhao	100	Cardero	Metals	Steel
	Total	15,790

1. AEI PRoC Global Investment Tracker

1.12 Appendix XII: Investments in the Energy Sector in Peru

	Investor	Quantity in millions of US$	Transaction party	Sector	Subsector
2013	PRoC National Petroleum Corp. (CNPC)	2890	Petrobras	Energy	Oil
2018	PRoC Three Gorges	1390	Odebrecht	Energy	Hydro
2012	PRoC Energy Engineering	900	Energia Azul	Energy	Hydro
2017	PRoC Three Gorges	220		Energy	Hydro
2017	PRoC Three Gorges	110		Energy	Hydro
2019	PRoC Three Gorges	3590	Luz del Sur	Energy	Distribution
2021	PRoC Three Gorges	560	Luz del Sur	Energy	Distribution
	Total	9660

1. AEI PRoC Global Investment Tracker