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Braskem Idesa investing in additional ship-unloading pier to lift ethane imports: CFO

December 01/2020

MOSCOW (MRC) -- Petrochemical producer Braskem Idesa is investing in an additional ship-unloading pier to increase its ethane imports, reported S&P Global with reference to Braskem's CFO Pedro Freitas' statement in November.

The initiative is part of the "fast track" project, which is responsible to provide imported ethane to the Veracruz complex in Mexico.

"We expect that in the beginning of 2021 we will be able to import more than 25% of our ethane requirements," Freitas said.

According to the executive, if working perfectly today, the "fast track" can deliver up to 20% of the complex needs, but this is "very hard to do".

Mexican state-owned Pemex is Braskem Idesa's main ethane provider, but the company is struggling to fulfill the agreed amount.

The supply contract signed between the two companies has come under scrutiny after former Braskem Idesa president Emilio Lozoya Austin's statement was delivered to the Mexican Attorney General's Office as part of an investigation.

The investigation is looking into claims of corruption in the deal as Mexican President Andres Manuel Lopez Obrador accuses Braskem Idesa of damaging Pemex in millions of dollars by making the oil company supply Braskem Idesa with artificially low-priced ethane.

"We remain in touch with Pemex to find a constructive solution regarding ethane," Freitas said.

As MRC informed before, in early February, 2020, Braskem said its Braskem Idesa joint venture with the Mexican group Idesa had reached an important milestone with the import of its first ethane from the US, which will be used as feedstock to at the Coatzacoalcos, Mexico, petrochemical complex. Braskem Idesa has spent USD4 million on logistics infrastructure and will be able to import up to 12,800 b/d of ethane to the feed the complex. This quantity represents 19% of the companys 1.05-million metric tons/year steam crackers ethane needs.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
Author:Margaret Volkova
Tags:PP, PE, PP random copolymer, propylene, HDPE, ethylene, gas processing, petrochemistry, Braskem, Mexico, Russia.
Category:General News
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