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Braskem reaches ethane supply deal with Pemex, including new terminal

September 29/2021

MOSCOW (MRC) -- Brazilian petrochemical producer Braskem said its Mexican subsidiary Braskem Idesa has reached a new gas supply agreement with Petroleos Mexicanos (Pemex) to settle differences between the companies and build a USD400 million ethane terminal, said Reuters.

Braskem Idesa will build a world-scale ethane terminal in Laguna de Pajaritos in Coatzacoalcos in Veracruz state, the joint venture said. The project will be in the CIIT - Interoceanic Corridor of the Tehuantepec isthmus.

Braskem Idesa did not specify the capacity of the terminal or whether Pemex will contribute any money towards the project. The joint venture did say that the project will be part of an investment plan announced by the federal government, which calls for development in Mexico's energy sector and in the southeastern part of the country.

Braskem Idesa, Pemex, the CIIT and the Port Administration of Coatzacoalcos have signed an agreement to work together. Braskem, the majority owner of Braskem Idesa, said the terminal is scheduled to start in the second half of 2024. It will allow Braskem Idesa to run its polyethylene (PE) operations at full capacity.

Braskem Idesa polyethylene and ethylene production has declined due to ethane feedstock supply problems with Mexican state oil company Pemex. The plant now runs at 75% of capacity.

Until the terminal starts operations, Pemex has agreed to supply Braskem Idesa with a minimum of 30,000 bbl/day of ethane under the amended supply agreement, Braskem said. That minimum commitment could be extended to February 2025 or later if the terminal has any delays in obtaining licenses.

As it was written earlier, Pemex had announced in March an agreement with Braskem for the delivery of 30,000 barrels of ethane per day until 2024, while the previous contract - signed in 2010 - determined the supply of 66,000 barrels per day for 20 years.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Based in Sao Paulo, Braskem is a leading Brazilian petrochemical company and the main producer of polyethylene and polypropylene in the country. The company owns the largest petrochemical facilities in Latin America and is the fifth largest in the world in petrochemical production. Braskem operates 18 chemical plants with a production capacity of over 11 million tonnes of chemical and petrochemical products per year.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, PP, PE, ethylene, propylene, neftegaz, petrochemistry, Braskem, Pemex Petrochemicals.
Category:General News
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