APLA '11: Braskem confirms interest in Peru cracker, PE project

08 November 2011 15:41  [Source: ICIS news]

BUENOS AIRES (ICIS)--Braskem remains interested in investing in an integrated cracker and polyethylene (PE) complex in Peru, an executive with the Brazil-based producer said on Tuesday.

“We continue to be interested in Peru and developing opportunities with Petroperu,” said Cleantho Leite, business development director at Braskem Idesa, a joint venture 65% owned by Braskem and 35% by Mexico-based Idesa.

The project is likely to be located in Ilo in the south of Peru, said Leite, who sits on a Braskem executive committee that develops strategies for international business.

A Pacific Coast location is attractive because it would enable the partners to supply the Pacific coast markets of South America, he said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting. Some material could also be exported to Asia, he added.

Braskem and Brazilian state-owned energy group Petrobras signed an agreement with Peru’s state-owned PetroPeru in 2008 to study the feasibility of an integrated polyethylene (PE) project in Peru. They said at the time that the proposed complex would have the capacity to produce between 700,000 and 1.2m tonnes/year of PE, based on gas from Peru’s Camisea gas fields.

The project was put on hold but now is now likely to be revived, as a result of plans by the Peruvian government to supply natural gas to southern Peru through a pipeline.

Braskem Idesa is developing a $3.6bn (€2.6bn) cracker and PE project near Coatzacoalcos, Mexico.

($1 = €0.73)

By: Anna Jagger
+44 20 8652 3214

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