22 August 2012 21:07 [Source: ICIS news]
NEW YORK (ICIS)--Mexichem’s proposed 500,000 tonne/year ethane cracker joint venture project with US-based Occidental Chemical in Texas is estimated to cost over $1bn (€800m) and will be a 50:50 joint venture, a Mexichem executive said on Wednesday.
Mexicem and Oxychem announced on 15 August that they signed a memorandum of understanding (MoU) to evaluate the formation of a joint venture to build a cracker at Ingleside.
OxyChem and Mexichem aim to make a final decision on the cracker in the second quarter of 2013 following the completion of a feasibility study and basic engineering. If they proceed, the cracker is expected to begin operations in 2016.
The VCM produced by OxyChem at Ingleside would be shipped to Mexichem’s PVC facilities in Mexico and Colombia, said the Mexichem executive.
Mexichem is also in the process of finalising its 60:40 joint venture with Mexico state-run oil company Pemex for the production of 400,000 tonnes/year of VCM at Pajaritos, Mexico.
Pemex currently has a 230,000 tonne/year VCM facility there, which would be expanded to 400,000 tonnes/year by 2015.
“We are in the final approval process on both sides,” said the Mexichem executive.
($1 = €0.80)
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