05 November 2011 23:28 [Source: ICIS news]
BUENOS AIRES (ICIS)--The construction of another world-scale cracker in Mexico is feasible but will depend on the availability of additional ethane feedstock, the chief executive of Idesa said on Saturday.
“In the next five years, we should see that availability of ethane, which I’m sure is abundant in Mexico,” said Idesa CEO Jose Luis Uriegas on the sidelines of the 31st annual Latin American Petrochemical Association (APLA) annual meeting.
“There are investments to raise proven reserves, and we are confident that should happen in the next five years. We would need another 66,000 bbl/day of ethane for another cracker,” he added.
Idesa would be willing to participate in the construction of another cracker in Mexico through its joint venture with Brazil-based petrochemical giant Braskem, said Uriegas.
The Braskem Idesa joint venture, 65% owned by Braskem and 35% by Idesa, is in the process of building a $3.6bn (€2.6bn) cracker and polyethylene (PE) project near Coatzacoalcos, Mexico.
That project, called Ethylene XXI, is expected to be completed by mid-2015.
A new cracker project could be completed by 2018 or 2019, depending on the availability of ethane, the chief executive noted.
Braskem Idesa also has the option to expand the Ethylene XXI project on the existing site if additional ethane feedstock is available, said Uriegas.
“We could expand cracker capacity by up to 50% if required,” he said.
APLA ends on Tuesday.
($1 = €0.73)
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