14/05/25
Q&A: Braskem Idesa Mexico terminal to feed cracker
Mexico City, 14 May (Argus) — The new ethane storage terminal owned 50:50 by
Brazilian-Mexican JV Braskem Idesa and the Netherlands-based Advario will be
fully operational by mid-July, when the Etileno XXI cracker returns from a
full-stop maintenance program, said Cleantho Leite, chief executive of Terminal
Quimica Puerto Mexico (TQPM), in an interview with Argus. Edited highlights
follow. What does the new terminal represent for Braskem after years of limited
ethane supply? TQPM solves a long-standing ethane supply shortage in Mexico,
which remains one of the largest ethane consumers in the region. Under the
previous supply contract with Pemex, we did not have full supply. It was like
having an F1 car with only 70pc of its fuel — eventually, we would run out of
supply before even completing the race. Now, thanks to this terminal, Braskem
can import the ethane it needs from the US to ensure consistent operations. Of
course, we will continue buying from Pemex whenever possible, as its ethane
remains the most cost-effective solution. But with this infrastructure in place,
we are no longer tied to a single supply source. When will the terminal begin
operating at full capacity? We are currently in pre-operational stages, and
commercial operations are expected to begin by late May. Then, the Braskem
complex will enter its scheduled maintenance shutdown. Once it resumes in
mid-July, we will begin transitioning to full utilization of the terminal. The
facility is fully capable of covering up to 100pc of Braskem's demand. In fact,
it was designed with a 25pc buffer — excess capacity that could support future
expansions. The equipment is ready, and whether we go from 75pc to 100pc in 15
days or in a month will depend entirely on Braskem's operating strategy. What is
going to happen with the ethane Pemex no longer uses? For now, I do not see
Pemex's own complexes significantly increasing their consumption of ethane. It
is not like they will double their intake overnight. At least during 2025, Pemex
is still in the process of reactivating its own crackers, so that volume will
remain available to Braskem. If Pemex eventually requires more supply, it has
its own import terminal. Alternatively, it could request capacity from TQPM if
needed. Also, Braskem has long-term contracts that allow flexibility in
adjusting volumes. If there is unused ethane in a given month, we can resell it
to other locations. That has always been part of our strategy. The Braskem
group, through Braskem Trading and Shipping, has consistently found alternatives
for any surplus. Do you foresee any regulatory or permitting issues under the
new legal framework in Mexico? No. We already hold all relevant permits from the
now-defunct energy regulator CRE, which are now under the authority of the new
CNE. That means no additional permits are required for the terminal under the
new framework. Furthermore, the open-access guidelines established by the CRE
are still valid and will be used by the CNE to issue and manage permits. The
only other authorizations we need are from customs, which have not hindered
pre-operations. Historically, the CRE reviewed transportation tariffs every five
years, and we expect the CNE will follow the same regulatory schedule. What is
the outlook for Braskem's crackers in Brazil regarding a transition to ethane?
In Brazil, Braskem currently operates four crackers — three based on naphtha and
one, in Rio de Janeiro, on ethane. The company is studying a broader shift
toward ethane to reduce dependence on naphtha. Shipments to Brazil would follow
a similar model to what we are doing in Mexico, with contracts signed with US
suppliers. Our Salvador Bahia plant already receives ethane occasionally, using
vessels that take roughly 12 days to arrive. Mexico has a geographical advantage
— just two days away from US ethane. What are the long-term plans for TQPM? Our
immediate focus is stable operation and efficiency. Long term, the terminal is
well located in the Interoceanic Corridor and could serve future industrial
projects. We have space and docking infrastructure to add tanks for chemicals,
ammonia or propane. Nothing is confirmed yet, but in 3–4 years we expect
opportunities to emerge. By Édgar Sígler Send comments and request more
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