Braskem Idesa (BI), a joint venture between Braskem and the Mexican company Idesa, signed an agreement with PEMEX Transformación Industrial and PEMEX Exploración y Producción to add to the ethane supply contract and with Petróleos Mexicanos, PEMEX Logística and other government entities establishing support measures for the project to build an ethane import terminal. This will guarantee access to diverse sources of raw material to produce full capacity and supply the local and international market.

 

The new terminal that Braskem Idesa will build to import ethane in Veracruz will be located in the area of the CIIT (Interoceanic Corridor of the Isthmus of Tehuantepec), which is one of the Mexican government's initiatives for the development of the country's southeast and the energy sector.

 

Regarding the supply, the agreement changes the current quantity. Pemex now supplies a minimum volume of 30,000 barrels of ethane per day until the terminal starts operating, scheduled for the second half of 2024, or the deadline of February 2025 (which may be extended if there are delays with licenses), what happens first. BI will have preemptive rights to purchase all the ethane that Pemex has available and not consume in its own production process until 2045, at prices according to international references.

 

These agreements (subject to final approval by the Boards of Directors of both parties, as well as BI's creditors) resolve contractual disputes that had been discussed by the parties and establish new volume and price commitments for the supply of ethane by Pemex, compatible with the current and future availability of the raw material in the country. The agreements will allow for the long-term sustainability of the plant located in Veracruz, Mexico.

 

With the new agreements, Braskem Idesa will continue to contribute to the social and economic development of Mexico, just as the Ethylene XXI Complex has done since the beginning of its operations in 2016. Braskem Idesa is the result of an investment of US$5.2 billion from Braskem and Grupo Idesa, which had a positive impact of more than US$4 billion on Mexico's trade balance and which has promoted the country's development by generating thousands of direct and indirect jobs.