APLA: '12: Mexico Ethylene XXI on track for July 2015 start-up

11 November 2012 00:16  [Source: ICIS news]

RIO DE JANEIRO (ICIS)--Mexico’s Ethylene XXI project is on track to come on stream by July 2015, the chief executive of one of its partners said on Saturday.

“The project is progressing well. Site preparation is complete and basic engineering finished. We have also made orders to procure around 50% of all the equipment,” said Jose Luis Uriegas, CEO of Grupo Idesa.

Mexico-based Idesa owns 35% of Braskem Idesa, the joint venture building Ethylene XXI, with Braskem owning 65%.

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

“One week ago, we also put our first structures in place on site – the racks for the pipes. Previously it had been levelling, piling and work on the foundations,” he added.

Ethylene XXI 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.

The $3.2bn (€2.5bn) financing package for the project is expected to close on 30 November, said Uriegas.

This represents around 70% of the total cost of $4.5bn, which includes construction costs of $3.7bn, plus working capital and interest.

The project is expected to make a substantial dent in Mexico’s PE deficit of 1.2m tonnes/year, said the CEO.

“By 2015, this deficit will be 1.7m tonnes/year, so we are basically supplying a significant part of that with Ethylene XXI,” Uriegas said.

The APLA conference ends on Tuesday.

($ = €0.79)

By: Joseph Chang
+1 713 525 2653

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