Pequiven, Mitsubishi investing US$400 mln in Venezuela

29-Dec-06

Venezuelan state-owned Pequiven has signed an agreement with Japanese firms Mitsubishi Corporation and Mitsubishi Gas Chemical to increase methanol production to 1.6 mln tpa. This will be achieved through the joint venture Methanol de Oriente (Metor), and will comprise construction of a new methanol plant with capacity of 850,000 tpa at the General José Antonio Anzoátegui petrochemical and oil complex in Anzoátegui state. Metor is currently running a plant producing 750,000 tpa of the basic alcohol. The natural gas used to manufacture the methanol will be provided by state oil firm PDVSA. Mitsubishi Heavy Industries has been awarded the contract for plant construction on a full turnkey basis. Construction is to commence in 2007 and scheduled to be finished by H2-2009, with commercial production estimated to start Q1-2010. The project will require investment of around US$400 mln, and will receive funding from a financing agreement involving the Japan Bank for International Cooperation (JBIC), the International Finance Corporation (IFC) and commercial banks, and additional investment from Metor. Pequiven owns 37.5% of Metor, with Mitsubishi Corporation and Mitsubishi Gas Chemical holding 23.75% each. Venezuelan conglomerate Empresas Polar controls 10% and the IFC the remaining 5%.