HOUSTON, March 21 (Reuters) - Mexico needs to rely on

natural gas while beginning its energy transition path to a

larger use of renewable energy, the CEO of Valia Energia, one of

the largest private power companies in Mexico, said on Thursday.

The Latin American country has a presidential election in

June with frontrunner Claudia Sheinbaum outlining a low-carbon

energy policy that would encourage renewable energy projects, a

change from current carbon-intensive policies led by President

Andres Manuel Lopez Obrador.

"Transition is not renewable. Energy transition is

sustainable energy," said Narcis de Carreras, CEO of Valia

Energia, at the CERAWeek energy conference in Houston. "Natural

gas continue to be a central part of the composition."

To achieve its energy transitions goals, Mexico must address

a long-standing pause in licensing, including the suspension of

a key bidding round for shale gas areas off the country's coast

that had been planned to ease Mexico's large gas deficit,

analysts have said.

Earlier this week, Sheinbaum said Mexico's energy demand

growth would be met through renewables, and added that state oil

company Petroleos Mexicanos could participate in the

exploration of lithium and production of renewable energy.

"We see a more pragmatic agenda, a more realistic, more

practical and more problem-solving mindset, which I think is

what the country needs for the challenges we have," de Carreras

said, referring to the candidates' agendas.

During Lopez Obrador's administration, the use of coal and

fuel oil for power generation has increased, policies to promote

larger consumption of cleaner motor fuels have been delayed, and

some emissions have increased, according to public and private

data.

His government also has prioritized projects by Mexico's

state-owned companies while injecting them with capital,

reducing the role of the private sector in the energy industry.

"To return to one of the schemes that has been successful in

the energy sector in Mexico, which has been deprived of the

public private collaboration. That's our expectation," de

Carreras added.

Valia Energia operates natural gas-fueled power generation

plants in the states of Tamaulipas, Coahuila and Estado de

México, and a gas line.