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.”
The Ethylene XXI project will be 100% privately owned, and therefore is different from Pemex’s failed ?xml:namespace>
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.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections