24 August 2012 18:35 [Source: ICIS news]
By Joseph Chang
NEW YORK (ICIS)--Mexichem and US-based Occidental Chemical (OxyChem)’s proposed 50:50 joint venture to build a 500,000 tonne/year ethane cracker for over $1bn (€800m) at OxyChem’s site in Ingleside, Texas, represents a wise move for Mexichem as it seeks to secure ethylene and vinyl chloride monomer (VCM) supply.
This latest cracker announcement brings the tally of new ?xml:namespace>
Unlike the other planned
Mexichem already has plans to source ethylene and VCM through a planned joint venture with
The proposed venture with Pemex, which was announced in June 2011 and expected to be approved by the first quarter of 2012, has been delayed. The venture is in the final approval process by both parties, a Mexichem executive told ICIS.
The Mexichem/Pemex 60:40 joint venture includes a 230,000 tonne/year VCM plant which will be expanded to 400,000 tonnes by 2015, a 200,000 tonne/year ethane cracker and a chlor-alkali plant in
Mexichem 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. Substantially all the ethylene would be used by OxyChem at Ingleside to produce around 1m tonnes/year of VCM to be sold to Mexichem under a long-term supply agreement.
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.
Mexichem had told ICIS in November 2011 at the Latin American Petrochemical Association (APLA) annual meeting that it was in preliminary discussions to partner on a condo cracker in the
But this deal will have VCM produced at the source in Ingleside and then sent down to
Additional reporting by Anna Jagger in
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