The original 3 potential partners of Mexico's state oil company Pemex have been joined by another ten interested companies. These companies have shown interest in the downsized US$840mn version of the Fénix petrochemicals project. Fénix will work out a negotiation process with these companies to arrive at the best option for the project.
Pemex had originally planned to partner with Canada's Nova Chemical and Mexican companies Indelpro and Idesa on the project. However, after the finance ministry rejected their request for subsidized natural gas feedstock prices, these companies are reviewing their participation. The altered plan announced by the Government last week plans to reduce investment 58% to US$840mn from the US$2bn originally estimated after Pemex failed to make headway brokering an agreement between the companies and the ministry. Instead of the construction of a new 1 million tpa ethylene cracker, the new downsized project will be include expansion of the existing capacities at La Cangrejera and Morelos petrochemicals complexes in Veracruz state to 875,000 tpa from 600,000 tpa each and the construction of a new aromatics complex in Altamira, Tamaulipas state.
16-Sep-05 
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