APLA ‘07: Venezuela targets petchem investments

19 November 2007 02:21  [Source: ICIS news]

BUENOS AIRES (ICIS news)--Venezuela’s petrochemicals ‘revolution’ is expected to involve investments of some $45bn (€30.6bn) in olefins, aromatics and fertilizers over the next 14 years, executives at state-owned Pequiven said here on Sunday.

“It is an ambitious plan,” said Polia Herrera de Saez, a director of Pequiven. “The government is allocating a large quantity [of resources] to realise these projects.”

The petrochemicals investments, which will be implemented in two phases, are aimed at increasing employment and adding value to Venezuela’s oil and gas sector, said de Saez.

She was speaking at the sidelines of the 27th Latin American Petrochemical and Chemical Association (APLA) annual meeting, which opened on Sunday.

With its huge oil and gas reserves, Venezuela is becoming increasingly aware of the importance of developing petrochemicals derivatives, added Mario Bello, Pequiven’s corporate planning manager.

Phase one will require an approximately $21bn investment between 2007 and 2013, while phase two will require about $25bn between 2014 and 2021, said de Saez, who is also vice president of APLA.

Pequiven is in talks with potential partners for various projects, the executives said.

Pequiven planned to create new complexes as well as expanding existing sites – in El Tablazo, Jose and El Palito/Moron -

A new facility in Paraguana in Falcon state will produce olefins and aromatics. Based on naphtha from the Paraguana refinery of state-owned energy group PDVSA, the complex is expected to be completed in 2014, de Saez said.

The Paraguana complex is part of phase one but will be completed in phase two, she noted.

Pequiven also planned to build a fertilizer complex in Puerto Nutrias, Barinas state. Due onstream in 2012, it is expected to produce phosphoric acid, sulphuric acid, diammonium phosphate (DAP), ammonium sulphate and nitrogen-based fertilizers.

The Puerto Nutrias complex will be supplied with raw materials from a phosphate rock mining and concentration facility in Navay, Tachira state which is due onstream in 2011, de Saez said.

As part of the second phase of investments, Pequiven is planning a nitrogen-based fertilizer complex in Guiria, added Bello.

($1 = €0.68)

By: Anna Jagger
+44 20 8652 3214

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