Petrobras commences construction of US$862 mln PTA complexes

01-Mar-07

Brazilian Petrobras' petrochemicals unit, Petrobras Quimica SA (Petroquisa) and textile firm Companhia Integrada Textil do Nordeste, or Citiene, plan to invest US$542 million in a petrochemicals factory to be called Companhia Petroquimica de Pernambuco, or PetrochimicaSuape, in Northeastern Brazil. The new unit to be 50% owned by Petroquisa and 50% by Citiene, will produce about 640,000 tpa of purified terephtalic acid, (PTA), and is expected to start operations in 2009. Petroquisa also plans to build a US$320 million joint venture named Citepe to produce raw materials for polyester used in the textile industry in Brazil's northeast. Petroquisa will have a 40% stake and Citene will hold the remaining 60%. Production at the unit for raw materials for polyester is expected to start in early 2008. The two petrochemical units will be located in proximity to Petrobras' planned 200,000 bpd heavy oil refinery together with Venezuelan state-oil firm Petroleos de Venezuela.