Braskem and Idesa announce partnership to develop a large petrochemical project in Mexico
Braskem and Idesa, traditional corporate groups in Brazil and Mexico, respectively, won the auction promoted by Pemex Gás, a state-owned company from Mexico, for the acquisition of raw materials with the objective of developing a large integrated petrochemical project in that country. The agreement will involve the supply of natural gas for 20 years in competitive conditions to be used as raw material in a cracker with the capacity for 1 million tons of ethylene per year, integrated with three polymerization units for producing 450 thousand tons of HDPE per year, 350 thousand tons of LLDPE per year and 200 thousand tons of LDPE per year.
The beginning of operations for the project is projected for 2015 and it will be located in the Coatzacoalcos Petrochemical Complex, in the Mexican state of Veracruz. It will be installed and operated by a joint venture to be formed with Braskem having majority and Idesa minority participation. The main objective will be to supply the domestic market in Mexico, which currently imports polyethylene.
Projected investments for installing the complex are initially projected to be US$ 2.5 billion. Shareholders intend to make it through project financing with at least 70% of debt and the rest with their own capital.
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