News | March 1, 2021

Braskem Idesa Announces Memorandum Of Understanding To Discuss Ethanol Supply In Mexico

Mexican gas transportation agency resumes unilaterally suspended service in December

Braskem Idesa signed a memorandum of understanding with Mexican state-owned oil and gas Pemex to discuss the contract for the supply of ethane in the country and the development of a terminal for the import of the raw material. In addition, the company signed a 15-year gas transport contract with the state agency Cenagás - the term of this contract is subject to the signing of the definitive negotiation with Pemex. As a result, Braskem Idesa's petrochemical complex in Mexico has already started to receive natural gas whose transport had been unilaterally interrupted by Cenagás in December.

The memorandum of understanding with Pemex provides terms and conditions for the discussion of potential additives to the supply contract. Braskem Idesa said in a statement to the market that "it cannot predict the outcome of the discussions with Pemex", but that it will keep the market informed of relevant developments. The ethane supply contract between Braskem Idesa and Pemex remains in force and valid, until it is eventually added.

Braskem Idesa is a company formed by the association of Braskem and Grupo Idesa, one of the main Mexican petrochemical companies. Together, the companies developed in the State of Veracruz the Ethylene XXI project, the largest petrochemical complex in Latin America, for the production of high and low density ethylene and polyethylene. The $ 5.2 billion project was the largest private investment in Mexico in recent decades.

Source: Braskem