Braskem to scale back investment in Venezuela PP project - report

28 April 2010 23:14  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian petrochemicals producer Braskem has agreed with Venezuelan state oil company PDVSA to scale back its investment in a petrochemicals plant there and to delay a second one, according to a Reuters report on Wednesday.

The agreement would lower costs for the 450m tonnes/year Propilsur polypropylene (PP) joint venture to $500m (€380m) from $1bn, the report said.

To lower costs, Braskem told ICIS news in March that it may relocate the project to Paraguana in Venezuela’s Falcon state so that the project could receive propylene feedstock from the Paraguana refinery complex.

That would eliminate the need to build an integrated propane dehydrogenation plant, Braskem said.

Meanwhile, Braskem and PDVSA also agreed to delay the construction of the Polimerica polyethylene (PE) project by a year to examine cheaper feedstock options, according to the Reuters report.

($1 = €0.76)

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By: Ben DuBose
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