APLA '12: Local demand can support proposed Peru PE project

12 November 2012 15:02  [Source: ICIS news]

RIO DE JANEIRO (ICIS)--Polyethylene (PE) demand along the west coast of South America is sufficient to support a world-scale plant, a consultant said on Monday.

In November 2011, Petroperu and Braskem signed a memorandum of understanding to analyse the technical and economic viability of a 1.2m tonne/year PE plant, which would rely on local ethane.

If Petroperu and Braskem go through with the project, it would be the first PE plant in Peru and the largest on the west coast of the Americas.

Moreover, being on the coast would give the plant easy access to export markets. In fact, Petroperu estimates that the project could generate $1bn/year (€790m/year) of exports.

Domestic demand in Peru, Ecuador and Chile is sufficient to support a world-scale plant, said Jorge Buhler-Vidal, director of Polyolefins Consulting.

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

Plus, the project would rely on ethane instead of higher-cost naphtha as a feedstock, allowing it to be competitive against US exports, which also rely on natural-gas-based raw materials.

The APLA conference ends on Tuesday.

($1 = €0.79)

By: Al Greenwood
+1 713 525 2645

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