APLA ’08: Pequiven’s projects face possible delays

18 November 2008 16:42  [Source: ICIS news]

RIO DE JANEIRO (ICIS news)--Pequiven face possible delays to its proposed petrochemicals projects as a result of the global financial crisis and falling oil prices, an official at the Venezuelan state-owned company said on Tuesday.

Pequiven, which is planning a range of projects including complexes in Jose and Paraguana, is reviewing its investment plan, said Freddy Salas, a former planning and development manager at Pequiven who will retire in March.

Salas was speaking to ICIS news on the sidelines of the 28th Latin American Petrochemical Meeting (APLA).

Depending on the project review, which is to be conducted at the end of this year, some of the projects could be delayed, said Salas.

“The number of projects that are delayed with depend on the budget plan,” he said, noting that Pequiven’s budget will depend on the evolution of oil prices.

But while the fall in oil prices translates into less income for Venezuela and Pequiven, it also means lower petrochemicals feedstock costs, he said.

At the same time, he said, falling steel prices are resulting in lower investment costs.

Pequiven’s Jose projects, to be implemented in partnership with Brazil’s Braskem, will produce polyethylene (PE) and polypropylene (PP).

The PP project is scheduled to start up in 2011, said Salas, while the integrated cracker and PE units are scheduled to start up at the end of 2012 or the beginning of 2013.

Salas said Ineos and Basell have been pre-selected to supply PE technologies, but the technology for the cracker has not yet been decided.

For the Paraguana project, Pequiven will produce a wide range of products, said Salas.

Phase 1, which is due on stream in 2014, includes plants for PE, PP, monoethylene glycol (MEG), polyethylene terephthalate (PET), styrene and polystyrene (PS), said Salas.

Salas said Paraguana’s phase 2, which is scheduled to start up in 2021, includes polyether polyols, toluene diisocyanate (TDI), propylene oxide (PO) and chlorine.

The three-day conference ends on Tuesday.

For more on PE and PP visit ICIS chemical intelligence
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By: Anna Jagger
+44 20 8652 3214

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