04 October 2012 20:39 [Source: ICIS news]
HOUSTON (ICIS)--The joint venture Braskem Idesa has signed a $2.7bn (€2.1bn) engineering, procurement and construction (EPC) contract for its Ethylene XXI project in Mexico, the company said on Thursday.
The EPC contract was awarded to a joint venture made up of Odebrecht (40%), Technip (40%) and ICA Fluor (20%), Braskem Idesa said.
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Planned downstream production includes two high density polyethylene (HDPE) plants with capacities of 350,000 tonnes/year and 400,000 tonnes/year and one 300,000 tonne/year low density polyethylene (LDPE) plant. INEOS is providing the HDPE technology, while LyondellBasell is providing the LDPE technology.
Ethylene XXI will receive feedstock ethane from Pemex-Gas through a 20-year long-term contract, based on Mont Belvieu reference prices, Braskem said.
The project intends to meet growing Mexican demand for PE, which now stands at 1.9m tonnes, Braskem said. Of that total, 70% is met by imports.
Ethylene XXI should begin operations in June 2015, Braskem Idesa said.
Brazil-based Braskem has a 65% stake in the Ethylene XXI project, with Mexico-based Idesa holding the remainder.
($1 = €0.78)
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