2009/11/9 @@@@@@@@@@@@@@@@@Œoˆά

Braskem Announces New Petrochemical Project in Mexico

Braskem S.A. ("Braskem"), in compliance with CVM Instruction 358/02
iƒuƒ‰ƒWƒ‹ΨŽζ–@‹K‘₯j, announces to shareholders and the market that, in association with IDESA, a traditional Mexican corporate group, it won the auction held by Pemex Gas, a state-owned Mexican company, for the acquisition of ethane, which will be used as feedstock for an integrated petrochemical project to be developed in that country ("Project Ethylene XXI").

2008/2/23@ƒƒLƒVƒR­•{A‘ζ“ρ‚ΜPhoenix project ŠJŽn

Project Ethylene XXI, which is scheduled to start operations in 2015 and will be located in the Coatzacoalcos Petrochemical Complex in the Mexican state of Veracruz, has the main objective of supplying Mexico's domestic market, which is currently a polyethylene importer. The Project will be installed and operated through a joint venture to be created, with IDESA's participation and controlled by Braskem. IDESA, a Mexican company with an active presence in international markets, has three business areas: Petrochemicals, Distribution and Construction Systems. It operates several production and commercial companies through strategic alliances of recognized prestige and that are leaders in their respective markets.

Project Ethylene XXI will comprise
(i) the acquisition, at competitive conditions, of ethane from Pemex Gas for a period of 20 years,
(ii) the construction of a cracker unit that will use the ethane acquired as feedstock for the production of
1 million tons/year of ethylene,
(iii) the construction of three integrated polymerization units for the production of
1 million tons/year of polyethylene.

The investment initially estimated for its implementation is up to US$ 2.5 billion over the course of 5 years, with shareholders planning to adopt a project finance model, with at least 70% financed through debt and the remaining 40% with shareholders' own capital. Braskem's board of directors has until December 2010 to come to a final investment decision.

Mexico currently imports over 1 million tons/year of polyethylene. Project Ethylene XXI integrates and complements Braskem's strategy to become a resins leader in the Americas.

September 20, 2008

Recently, it was announced that federal government has planned the Ethylene XXI project, and many corporations are showing keen interest in it.

One such Mexican conglomerate Alfa, one of the leading enterprises in the country, is also competing for this project.

Sources from Alfa said that domestic and foreign companies will participate in an auction, to be held by state oil company Pemex, to supply 66,000b/d of ethane for 15 years for the complex.

Sources also said that this project, which is expected to need an investment of US $2.5-3 billion, will also include an ethylene cracker among others.

The project involves the construction of five plants in Coatzacoalcos, Veracruz state - one ethylene, one ethylene oxide, one polypropylene and two polyethylene facilities

Experts said that Government had taken this step so as to reduce imports of petrochemicals derived from ethylene and propylene as well as increase the feasibility of the petrochemicals industry.

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Plastics NewsPosted March17 2010

Braskem signs $2.5bn deal with Pemex

Brazilian petrochemicals giant Braskem and Mexicofs Grupo Idesa have formalised an agreement with Pemex Gas y Petroquímica Básica to build a $2.5bn petrochemical complex in Coatzacoalcos, Mexico. The plans include an ethylene cracker and three polymerization plants.

In November, the two companies signed a memorandum of understanding with Pemex Gas y Petroquímica Básica, a subsidiary of state oil company Petróleos Mexicanos (Pemex), for the crackerfs feedstock. The cracker alone will cost $1bn.

But it was not until last month that the three parties sealed the deal in the presence of Presidents Felipe Calderón Hinojosa and Luiz Ignacio Lula da Silva, of Mexico and Brazil, respectively, by which time a decision to add the polymerisation plants had been reached.

The official signing ceremony took place at the conclusion of a summit of Latin American and Caribbean leaders, held close to Cancún, southeastern Mexico, in late February.

According to Idesa, of Mexico City, Braskemfs participation in the joint venture is 65% while Idesafs is 35%.

gThe participation of Pemex as a minority partner in the project is still being studied,h Idesa said on its Web site.

It is the largest single Brazilian investment ever made in Mexico and the biggest investment in Mexicofs petrochemicals sector in the last 20 years, it added.

Headquartered in São Paulo, Braskem is Latin Americafs largest petrochemical company.

In a separate deal, Pemex agreed to sell Braskem 375,000 metric tons of naptha, a raw material used in the production of basic petrochemicals that are then converted into thermoplastic resins, Idesa said.


Oct. 4, 2012 

ICA Fluor Part of Joint Venture to Design and Build New Petrochemical Complex in Mexico

Fluor Corporation announced today that ICA Fluor, the industrial engineering partnership of Fluor and Empresas ICA, is part of the joint venture that was awarded a multi-billion dollar engineering, procurement and construction contract by Braskem Idesa. The joint venture company, which includes Odebrecht, Technip and ICA Fluor, will design and build the new Etileno XXI petrochemical complex in the Mexican state of Veracruz. Fluor will book approximately $275 million into backlog in the fourth quarter of 2012.

The new petrochemical complex will include a 1 million ton-per-year ethylene cracker and two high density polyethylene plants. The joint venture project team will utilize several operating centers around the world to execute the project.

ICA Fluor was part of the team that performed front-end engineering for the offsites and facilities during 2011.
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