Braskem, PetroPerú sign MOU Nov. 24 to analyze technical, economic feasibility of integrated production of 1.2 million tons of ethylene, polyethylene annually using ethane from natural gas reserves in Las Malvinas region of Peru
November 28, 2011
– Braskem, the leading thermoplastic resin producer in the Americas, and Petróleos Del Perú (PetroPerú), a state-owned company dedicated to the transportation, refining and sale of fuels and other petroleum by-products, will join forces and sign a Memorandum of Understanding on Thursday, November 24 to analyze the technical and economic feasibility of a petrochemical project in Peru.
The aim of both companies is to study the feasibility of implanting units for the integrated production of 1.2 million tons of ethylene and polyethylene per year using ethane from the natural gas reserves in the Las Malvinas region. If feasibility is confirmed and assuming the successful negotiation of the definitive agreements and approval by the shareholders of both companies, the undertaking will be part of the so-called Integrated Southern Project, which includes the construction of the Southern Andean Gas Pipeline by Kuntur and of a modern petrochemical complex in the south of Peru, which will be a landmark in the country's industrialization process.
"The creation of this partnership will drive economic and social development in Peru. The project's great advantage lies in its strategic location on the Pacific coast and its capacity to attend not only the Peruvian market, but also other countries in the Andean region," said Humberto Campodónico, CEO of PetroPerú.
According to Sergio Thiesen, Braskem's International Business Officer for South America, "this initiative is in line with Braskem's strategic vision of becoming one of the global chemical leaders by 2020 through a combination of domestic market growth, alternative and competitive raw material sources and the pursuit of opportunities for international expansion into new markets, especially in the Americas.