MOSCOW (MRC) -- Petrobras’ Executive Board has approved a new long term naphtha supply agreement with Braskem, for the amount of 7 mln tpa, as per Plastemart.
The contract has a 5 year term and a rate of 102.1% of the price of naphtha in the northwest of Europe (ARA). The agreement also allows for, from 2018 on, the possibility of renegotiation of the commercial terms depending on pre-determined market conditions.
Braskem depends on naphtha from Petrobras to operate its Brazilian plants, the dominant supplier of polyethylene, polypropylene and polyvinyl chloride (PVC) to Brazil, the world's seventh-largest economy.
As MRC informed previously, Braskem SA will soon decide whether to build a plant in Texas or Pennsylvania to convert low-cost natural gas into polypropylene. The factory would produce at least 1 billion pounds (450,000 metric tons) of resin a year and would be the U.S. polypropylene industry’s first world-scale project in about 12 years, said Mark Nikolich, a vice president at Braskem in June 2015. Preliminary engineering is under way for construction at existing Braskem sites in either La Porte, Texas, or Marcus Hook, Pennsylvania.
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).
MRC