MOSCOW (MRC) -- Brazilian petrochemical firm Braskem says construction work on its Etileno XXI complex in Mexico is 82% complete as it targets a 4Q15 startup for the USD4.5bn project, said Bnamericas.
In its third quarter earnings report, Braskem said over 50,000t of material and 660 pieces of equipment had been delivered to the site in the Coatzacoalcos region of Veracruz state.
The announcement came as Braskem reported a Q3 profit of 230mn reais (USD91mn), down 42% year-on-year. The company said plummeting global oil prices were beginning to impact the value of its petrochemicals.
A centerpiece of Braskem's project pipeline, Etileno XXI is a joint venture with Mexican industrial conglomerate Idesa, which owns a 30% stake. The ethane cracker will have an annual polyethylene (PE) production capacity of 1.05Mt.
"The integrated project continues to advance and the completion of construction and the plant's startup are expected by end-2015," Braskem said.
Meanwhile Braskem said it was still conducting feasibility studies for the proposed Ascent complex in the US state of West Virginia. The project's blueprint includes an ethane cracker, three polyethylene plants and associated infrastructure for water treatment and energy cogeneration. The Sao Paulo-based firm said the project aimed to maximize opportunities offered by US shale gas.
"Around 50% of the feedstock supply has been guaranteed already and the project team continues to make progress on finalizing new agreements," Braskem said.
Braskem cited geopolitical tensions in major oil-producing countries and higher hydrocarbon production in the US as "main risk factors" to its future performance. The company said its immediate priorities include securing new contracts for feedstock and power supply.
Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC