Pemex's Phoenix petrochemical project called off

09-Jan-08

Petroleos Mexicanos (Pemex)'s proposed Phoenix petrochemical and plastics project has been called off after a decision by the Mexican government not to provide financial support to the venture. The Phoenix project, to comprise a US$1.9 bln olefins and polyolefins complex based on ethane, and a US$1.2 bln cracker and aromatics complex was scheduled for completion by 2011. Pemex's planned 300,000 tpa PE JV with NOVA Chemicals and Mexican firm Idesa was shelved at the beginning of 2007, and only one of the two proposed cracker expansions of the company will proceed. Pemex originally sought to boost ethylene capacity at both its Morelos and Cangrejera crackers, to 900,000 tpa at each site. Upgrade at only the Morelos cracker will now go ahead with capacity to increase to 850,000 tpa. The expansion is anticipated to be completed at the start of 2010. The implementation of the proposed aromatics expansions at the Pemex's Cangrejera and Coatzacoalcos sites has also been delayed. Work on Coatzacoalcos will require US$350 mln and is anticipated to add 750,000 tpa of aromatics by the end of 2009.