17 November 2008 20:03 [Source: ICIS news]
Pemex’s gas division is expected to progress discussions regarding the supply of feedstock for a petrochemicals complex next year, according to industry players attending the 28th Latin American Petrochemical Annual Meeting (APLA).
But the project will only succeed if Pemex offers the gas at a reasonable price. “If a floor is set, and if that floor is too high, no-one will be willing to invest because they won’t be competitive in their end markets,” said Raul Arias, a consultant with US-based Nexant.
Pemex intends to open a bidding process for ethane gas to build an approximately 1m tonne/year cracker plus derivatives plants in Coatzacoalcos in Mexico’s Veracruz state, said Luis Rafael Montanaro Sanchez, strategic planning and business development manager at Pemex Petroquimica, Pemex’s petrochemicals arm.
“Discussions are taking place,” he said. “The project is alive.”
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Mexican petrochemicals majors Idesa, Mexichem and Alpek plan to submit a joint bid. According to Jose Luis Uriegas, Idesa’s chief executive, the selection process was initially scheduled for completion at the end of this year, but completion has now been delayed until the second quarter of 2009.
However, according to some industry observers, the discussions are on hold and are not expected to resume until the second quarter of 2009.
Negotiations to build a major new petrochemicals complex in
Construction of a privately owned petrochemicals plant in
Mexican President Felipe Calderon supports the construction of a petrochemicals complex, but it is a risky position to take, the consultant added.
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