Peruvian government publishes energy legislation aimed at developing petrochemical complex in south of country as officials look to use gas reserves as feedstocks for ethane, PE

SANTIAGO, Chile , December 26, 2012 () –

The Peruvian government has published energy legislation aimed at developing a petrochemical complex in the south of the country.

Peru aims to use its gas reserves as feedstock for petrochemical plants producing ethane and polyethylene, substituting imports of plastics and exporting along the Pacific coast of the Americas and to Asia.

Brazilian petrochemical company Braskem (NYSE: BAK) is designing the project in partnership with state-owned Peruvian energy companies, but whether it leaves the drawing board will depend on the availability of gas.

The legislation passed by the Peruvian congress sets the regulatory framework for increased supply of natural gas.

It will also enable the government to carry out a US$400mn capital increase in state petroleum company Petroperú, so that it can participate in the petrochemical project.
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