Braskem Idesa and Pemex have agreed that Pemex would halve to 30,000 b/d its contracted ethane supplies to Braskem Idesa, the Mexican petrochemical producer said Sept. 28.
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Register NowThe initial 2010 contract had the state oil and natural gas company providing Braskem Idesa with 66,000 b/d of ethane for 20 years.
The amended contract says settlement of previously existing contractual issues were solved. Pemex had owed Braskem Idesa $65 million for not delivering the quantity of ethane agreed in contract, previously, according to Braskem.
"The addendum changes the minimum volume commitment to 30,000 barrels per day until the entry into operation of an ethane import terminal, scheduled for the second half of 2024 or the deadline of February 2025 (possible of extensions if there are delays with licenses), whichever comes first," Braskem Idesa said in an email.
"Additionally, the addendum establishes a preemptive right for Braskem Idesa to acquire all the ethane that Pemex has available and does not consume in its own production process until 2045, at prices according to international references," it said.
Braskem Idesa also signed a contract with Pemex and other Mexican government entities that establishes support measures for the project to build the ethane import terminal, with the capacity to meet all of its raw material needs, it said.
Braskem Idesa's ethane import terminal is expected to supply 100% of its plant's ethane needs, which would make Braskem Idesa less dependent on Pemex.
The addendum has to be approved by applicable stakeholders, including final approval of Braskem Idesa's shareholders and creditors, it said.
Braskem Idesa is a joint venture between Brazil's Braskem and Mexico's Idesa and has a nameplate production capacity of 1.05 million mt/year each of ethylene and polyethylene.