Braskem Idesa ethane terminal eyes 2025 startup in Mexico

MEXICO CITY (ICIS)–The joint venture developing a new terminal in Mexico that will supply ethane to Braskem Idesa’s ethylene complex could start operations at the beginning of 2025, as the project is 48% complete, the CEO of the venture said.

The terminal will include two cryogenic tanks, which will provide it with up to 54,000 tonnes of storage, said Cleantho Leite, CEO of Terminal Quimica Puerto Mexico (TQPM), the joint venture developing the project. He made his comments in an interview with ICIS.

The terminal will include a 10km pipeline, and it will cost $450m, he said. It will provide feedstock to Braskem Idesa’s Ethylene XXI complex, which also produces polyethylene (PE).

The additional storage will provide the terminal and the ethylene complex with a buffer in case a shipment is delayed.

The terminal should be completed by the end of 2024, which would allow operations to start in 2025, Leite said.

Once completed, the terminal will provide the ethylene complex with a secure and reliable supply of imported ethane that could meet all of its feedstock needs.

The terminal can increase its capacity by 20-25% with no additional investment, Leite said. That would open up the possibility of expanding capacity at the ethylene complex if Braskem Idesa chooses to do so.

However, the terminal is not designed for a major expansion, Leite said.

Braskem Idesa has contracted 100% of the terminal’s shipments, he said. The terminal could provide feedstock to Mexico’s other ethylene producer, Pemex, but that would require negotiations.

ETYLENE XXI RAN AT 85%
Ethylene XXI does have access to ethane through shipments of domestic material from Pemex and imports of US material at its current terminal.

The operations at the existing terminal are not ideal because it relies on trucks to transport the ethane from the terminal to the complex.

In addition, the current setup does not provide Braskem Idesa with a large buffer in case of disruptions.

An outage can hit Pemex’s midstream operations or a storm could delay a ship.

The current terminal is on the Gulf of Mexico, which contends with threats from hurricanes and tropical storms every summer.

Braskem Idesa is a joint venture made up of Braskem (75%) and Grupo Idesa.

TQPM is a joint venture made up of Braskem Idesa (50%) and Advario.

The interview was conducted over the phone during the Plastimagen plastics trade show, which runs through Friday.

Interview article by Al Greenwood