Braskem Idesa (BI) reports that it has entered into an agreement with Petróleos Mexicanos (PEMEX), adjusting the terms of its supply contract, as well as an agreement to develop an ethane import terminal. This gives it the possibility of making medium- and long-term plans by having access to various sources of raw materials that will enable it to produce polyethylene at full capacity to supply the local and international markets.
This agreement (subject to final approval by the Boards of Directors of both parties, as well as BI's creditors), in addition to resolving historical differences that had been discussed by the parties, establishes new volume and price commitments for the supply of ethane from PEMEX to BI, compatible with the current and future availability of this raw material in the country. The agreement will allow the long-term sustainability of our plant, located in Nanchital de Lázaro Cárdenas del Río, Veracruz.
In addition, Braskem Idesa plans to build a new terminal for the ethane import on global scale, with an investment of approximately US$400 million, which will be located in the Pajaritos Lagoon, in Coatzacoalcos, Veracruz. This project will be located in the area of the CIIT - Interoceanic Corridor of the Isthmus of Tehuantepec - and is one of the initiatives of the investment plan announced by the Federal Government for the development of the southeast of the country and the energy sector. As a result of the above, a collaboration agreement was signed with PEMEX, CIIT and API Coatzacoalcos (Administración Portuaria Integral de Coatzacoalcos).
Thus, the new agreement guarantees BI's operations, providing certainty to its customers, creditors, shareholders and collaborators, promoting the development of the domestic petrochemical industry, which is source of essential raw materials for countless production chains.
With the new agreements, BI will continue to contribute to the social and economic development of Mexico, as the Ethylene XXI Complex has done since the beginning of its operations in 2016. Braskem Idesa is the result of a 5.2 billion dollar investment by Braskem and Grupo Idesa, which has positively impacted Mexico's trade balance by more than 4 billion dollars and has boosted the development of the southeast of the country with the generation of thousands of direct and indirect jobs.