Brazil's Petrobras invests in Mexico project - Veracruz official

02 August 2011 01:31  [Source: ICIS news]

MEXICO CITY (ICIS)--Part of the $11bn investment earmarked by Brazil's Petrobras for the Gulf of Mexico area will include funding part of the Ethylene XXI project in Coatzacoalcos, Mexico, in the state of Veracruz, a state official said on Monday.

That funding will go through the project’s technical partner, Brazil’s Braskem, said Gerardo Mancilla, the head of industrial promotion for Veracruz Gerardo Mancilla.

The joint venture project by Braskem and Mexico’s Idesa,  called BraskemIdesa,  includes of a 1m tonne/year ethylene cracker and polyethylene (PE) plants with a capacity of 1m tonnes and was projected to be on line in 2015.

Braskem said last year the project was expected to cost $2.5bn ($1.7bn) but Mancilla said it would cost $3bn.

Mancilla was not able to provide the specific amount that Petrobras would provide for the Ethylene XXI project.

The Brazilian energy major recently said it was investing $224.7bn in projects in its five-year plan through 2015 spanning from the Gulf of Mexico to West Africa, southern Portugal, the Black Sea and the Colombian Basin.

The Petrobras portion of the funding for Ethylene XXI will come out of this outlay, according to Mancilla.

($1 = €0.69)

By: James Young

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