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Notes to the consolidated financial statements
23C) Other commitments
AsofDecember31,2013and2012,CEMEXhadcommitmentsforthepurchaseofrawmaterialsforanapproximateamountofUS$107
($1,398)andUS$127($1,632),respectively.
InSeptember2006,CEMEXandtheSpanishcompanyACCIONAformalizedanalliancetodevelopawindfarmprojectforthegeneration
of250Megawatts(MW)intheMexicanstateofOaxaca.CEMEXactedaspromoteroftheproject,whichwasnamedEURUS.ACCIONA
providedtherequirednancing,constructedthefacilityandcurrentlyoperatesthewindfarm.Theinstallationof167windturbinesinthe
farmwasnishedonNovember15,2009.TheagreementsbetweenCEMEXandACCIONAestablishedthatCEMEX’splantsinMexicowill
acquireaportionoftheenergygeneratedbythewindfarmforaperiodofatleast20years,whichbeganinFebruary2010,whenEURUS
reachedthecommittedlimitcapacity.FortheyearsendedDecember31,2013,2012and2011,EURUSsupplied(unaudited)approximately
25.8%,29.1%and23.7%,respectively,ofCEMEX’soverallelectricityneedsinMexicoduringsuchyear.ThisagreementisforCEMEX’sown
useandthereisnointentionoftradinginenergybyCEMEX.
In1999,CEMEXenteredintoagreementswithaninternationalpartnership,whichnanced,builtandoperatedanelectricalenergygenerating
plantinMexicocalled
TermoeléctricadelGolfo
(“TEG”).In2007,theoriginaloperatorwasreplaced.Pursuanttotheagreement,CEMEXwould
purchasetheenergygeneratedfromTEGforatermofnotlessthan20years,whichstartedinApril2004andthatwasfurtherextended
until2027withthechangeofoperator.Inaddition,CEMEXcommittedtosupplyTEGandanotherthird-partyelectricalenergygenerating
plantadjacenttoTEGallfuelnecessaryfortheiroperations,acommitmentthathasbeenhedgedthroughfour20-yearagreementsentered
with
PetróleosMexicanos
(“PEMEX”),whichterminatein2024.Consequently,forthelast3years,CEMEXintendstopurchasetherequired
fuelinthemarket.FortheyearsendedDecember31,2013,2012and2011,TEGsupplied(unaudited)approximately70.9%,67.8%and
69.1%,respectively,ofCEMEX’soverallelectricityneedsduringsuchyearforitscementplantsinMexico.
Inregardswiththeabove,inMarch1998andJuly1999,CEMEXsignedcontractswithPEMEXprovidingthatbeginninginApril2004
PEMEX’sreneriesinCadereytaandMaderoCitywouldsupplyCEMEXwithacombinedvolumeofapproximately1.75milliontonsofpetcoke
peryear.AsperthepetcokecontractswithPEMEX,1.2milliontonsofthecontractedvolumewillbeallocatedtoTEGandtheotherenergy
producerandtheremainingvolumewillbeallocatedtoCEMEX’soperationsinMexico.ByenteringintothepetcokecontractswithPEMEX,
CEMEXexpectstohaveaconsistentsourceofpetcokethroughoutthe20-yearterm.
In2007,CEMEXOstzementGmbH(“COZ”),CEMEX’ssubsidiaryinGermany,enteredintoalong-termenergysupplycontractwithVattenfall
EuropeNewEnergyEcopower(“VENEE”),pursuanttowhichVENEEcommittedtosupplyenergytoCEMEX’sRüdersdorfplantforaperiod
of15yearsstartingonJanuary1,2008.Basedonthecontract,eachyearCOZhastheoptiontoxinadvancethevolumeofenergythat
itwillacquirefromVENEE,withtheoptiontoadjustthepurchaseamountonetimeonamonthlyandquarterlybasis.Accordingtothe
contract,COZacquired(unaudited)approximately27MWin2011,2012,and2011,COZexpectstoacquire27MWperyearfor2013
and2014,andexpectstoacquirebetween26and28MWperyearstartingin2015andthereafter.Thecontract,whichestablishesaprice
mechanismfortheenergyacquired,basedonthepriceofenergyfuturecontractsquotedontheEuropeanEnergyExchange,didnotrequire
initialinvestmentsandwasexpectedtobeperformedatafuturedate.Basedonitsterms,thiscontractqualiedasanancialinstrument
underIFRS.However,asthecontractisforCEMEX’sownuseandCEMEXsellsanyenergysurplusassoonasactualenergyrequirementsare
known,regardlessofchangesinpricesandtherebyavoidinganyintentionoftradinginenergy,suchcontractisnotrecognizedatitsfairvalue.
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