US$5 bln Ethylene XXI project in Mexico moves towards a 2015 start-up

29-Oct-10

Braskem and Grupo Idesa's $2.5bn Ethylene XXI project in Mexico is moving forward for a 2015 start-up, with PEMEX on the sidelines for now as per ICIS. The project, also known as Braskem Idesa was launched in April, with Braskem holding a 65% stake and Idesa 35%. The Braskem Idesa joint venture has an "open invitation" to Mexico's state-owned energy giant PEMEX to take a minority stake in the project. However, no response has been received from PEMEX. PEMEX is expected to respond in the coming months, possibly in 2011. But the project is proceeding as planned, construction does not depend on PEMEX taking a stake. The project is backed by an ethane supply contract from Mexican state-owned oil company PEMEX. The project will be the largest to date in Mexico and would reduce the country's imports of polyethylene (PE). FEED [front-end engineering and design] is expected to be complete by mid-2011. The partners aim to have 70% of the cost financed with debt. Financing arrangement will be arranged by the end of 2011, construction will commence in 2012-2014. By early 2015, the project is expected to come on stream. The project comprises a 1m tonne/year ethylene cracker and PE plants with a capacity of 1 mln tons. The previously planned breakdown of 450,000 tpa of high density polyethylene (HDPE), 350,000 tpa of linear low density polyethylene (LLDPE) and 200,000 tpa of low density polyethylene (LDPE) has yet to be finalized.