Peru's Petroperu, Braskem sign deal to study PE project

25 November 2011 23:39  [Source: ICIS news]

HOUSTON (ICIS)--Peru-based refiner Petroperu and Braskem signed a memorandum of understanding to study the viability of an integrated polyethylene (PE) complex, the Brazil-based plastics producer said on Friday.

Under the deal, the companies will study the viability of a 1.2m tonne/year PE and ethylene complex that would use ethane as a feedstock, Braskem said. The company gave no timeline for the proposed project.

The ethane would come from the natural-gas reserves in Peru's Las Malvinas region, Braskem said.

Ultimately, Peru-based pipeline company Kuntur will build a pipeline supplying the feedstock to the complex, Braskem said.

Petroperu estimates that the PE produced by the complex could replace $300m/year (€225m/year) of imported thermoplastics. Likewise, the complex could produce $1bn/year worth of exports.

The project also has the potential of creating other related industries that currently do not exist in Peru, such as aromatics, other thermoplastics and methane-based chemicals, Petroperu said.

Earlier, Brazil-based Petrobras said it was considering building a petrochemical complex with Petroperu in the southern city of Ilo.

($1 = €0.75)

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By: Al Greenwood
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