Braskem seeks Mexico ethane terminal partner

Brazilian petrochemical giant Braskem's joint venture in Mexico, Braskem-Idesa, is actively seeking partners for its $400mn ethane import terminal in Pajaritos, Veracruz state.

The joint venture has created a subsidiary, Terminal Químico Puerto Mexico, that will own and operate the terminal. Braskem-Idesa, which is 65pc owned by Braskem, is in the final stages of selecting a partner for the project, with a final decision likely in the next few months.

"The Mexican government is adopting a very positive stance in supporting our investment," Braskem chief financial officer Pedro Freitas said. "This may be the largest private investment underway in Mexico right now."

Engineering studies are advancing and construction is expected to start in the second half of 2022, with operations to begin in 2024, Freitas said.

Under two contracts, Mexico state-owned Pemex will supply 30,000 b/d of ethane and provide support for construction of the terminal. The ethane will feed Braskem-Idesa's 1mn metric tonnes/yr ethylene plant in Coatzacoalcos.

Expansion

Braskem said it is working to further expansion of its "fast track" program to import as much as 35,000 b/d of US ethane, up from a record 20,900 b/d in the fourth quarter. Braskem-Idesa has been importing the US feedstock through the program to a nearby port and then trucking it to its 1.15mn t/yr polyethylene (PE) plant in Coatzacoalcos.

Pemex delivered 30,600 b/d of ethane in the quarter, exceeding its 30,000 b/d contractual obligation, and Braskem said it believes Pemex will continue to meet its supply obligations.

Braskem this year plans to invest $200mn in Braskem-Idesa, mainly for projects related to efficiency.

By Frederico Fernandes