Braskem Idesa investing in additional ship-unloading pier to lift ethane imports: CFO

Sao Paulo — Petrochemical producer Braskem Idesa is investing in an additional ship-unloading pier to increase its ethane imports, Braskem's CFO Pedro Freitas said Nov. 11.

The initiative is part of the "fast track" project, which is responsible to provide imported ethane to the Veracruz complex in Mexico.

"We expect that in the beginning of 2021 we will be able to import more than 25% of our ethane requirements," Freitas said.

According to the executive, if working perfectly today, the "fast track" can deliver up to 20% of the complex needs, but this is "very hard to do".

Mexican state-owned Pemex is Braskem Idesa's main ethane provider, but the company is struggling to fulfill the agreed amount.

The supply contract signed between the two companies has come under scrutiny after former Braskem Idesa president Emilio Lozoya Austin's statement was delivered to the Mexican Attorney General's Office as part of an investigation.

The investigation is looking into claims of corruption in the deal as Mexican President Andrés Manuel López Obrador accuses Braskem Idesa of damaging Pemex in millions of dollars by making the oil company supply Braskem Idesa with artificially low-priced ethane.

"We remain in touch with Pemex to find a constructive solution regarding ethane," Freitas said.