APLA '12: Future Mexico cracker could rely on associated gas

11 November 2012 00:06  [Source: ICIS news]

RIO DE JANEIRO (ICIS)--Associated gas could provide Mexico with enough feedstock ethane for another cracker, the chief executive of Grupo Idesa said on Saturday.

Oil production in Mexico is rich in associated gas, and state oil producer Pemex has set itself a goal of increasing oil production, said Jose Luis Uriegas, chief executive of Grupo Idesa, a polystyrene (PS) producer based in Mexico.

Uriegas made his comments on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.

The ethane from oil production could become a long-term, competitive source of feedstock for another cracker, he said.

Already, Idesa and Braskem are building the ethane-based Ethylene XXI project, which includes a 1.05m tonne/year ethane cracker, 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.

Even with the completion of Ethylene XXI, Mexico would still have a deficit of PE as well as ethylene glycol (EG), another ethylene derivative, Uriegas said.

Consequently, Mexico could support another ethane-based cracker.

Ideally, the ethane would also be provided by increased natural-gas production, Uriegas said.

APLA ends on Tuesday.


By: Al Greenwood
+1 713 525 2645



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