Braskem and Idesa Set for Mexican Petrochemical Project
Brazil's Braskem and Mexico's Idesa have signed an investment agreement and raw material (ethane) supply agreement with Mexican firm Pemex for setting up a $2.5bn integrated petrochemical project in Mexico.
The agreements will be formalised and finalised at the close of the Strategic Mexico-Brazil Entrepreneurs Forum.
Under the supply agreement, which will be valid for 20 years, Braskem and Idesa will provide 66,000bpd of ethane to the new project to be used as feedstock.
Another one-year agreement will also be signed to ensure that Braskem will supply 34,000t of the basic petrochemical products propylene and butene to Pemex.
Once completed, the project will produce one million tonnes/day of ethylene and polyethylenes at three polymerisation plants.
The project is expected to back up the existing polyethylene Mexico imports worth $2bn a year.
The project, a joint venture 65% owned by Braskem and 35% by Idesa, is expected to be operational in 2015.