Brazilian petrochemicals producer Braskem and Peruvian state oil company Petroperu have signed a letter of intent to build a $3bn petrochemical plant on the latter's coast to meet growing demand for polyethylene.
The project is part of $10bn energy investments by Peruvian Government, including petrochemical complexes to be built by CF Industries.
Braskem vice-president Luiz de Mendonca said the plant is expected to start producing one million metric tons of resin a year by 2017.
The partners will conduct a $5m, one-year feasibility study, Mendonca added.
The project is based on the availability of sufficient natural gas reserves and the construction of the Southern Andean gas pipeline.