Mexico Phoenix project restart seen viable

09 April 2008 22:47  [Source: ICIS news]

MEXICO CITY (ICIS news)--Reforms announced early this week by state-run Petroleos Mexicanos (Pemex) seek to untangle and facilitate investments in Mexico’s oil and petrochemical sectors, and the new Phoenix project may be the main beneficiary in the petrochemical sector, Jorge A. Carrillo Careaga, commercial manager of Pemex Petroquimica said on Wednesday at Mexico’s Plastimagen.

Asked to define the main differences between the old, failed Phoenix project, and the new one, Carrillo Careaga said that in the former, the agreement achieved by Pemex Petroquimica and the private companies was blocked by the Finance Ministry.

In the new project, the ethane needed to feed a private cracker will be provided by Pemex Gas and sold to private investors through a long-term contract based on a formula already approved by the Finance Ministry. The only challenge remaining is the acceptance of such formula by private investors.

In other words, while in the past Pemex Petroquimica would be partnering with private investors, now Pemex will be an independent seller of ethane to private companies investing in Mexico, Carrillo Careaga said.

No details were revealed about the make up of the commercial formula.

By: George Martin
+1 713 525 2653

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