Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 1 related plant in PECWeb
Released April 19, 2016 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The new wave of U.S. ethane-driven projects has been beaten to the punch by Mexico's Etileno XXI. Located in Veracruz, the $5.2 billion joint venture by Brazil's Braskem (NYSE:BAK) (Sao Paulo) and IDESA (Asturias, Spain) began processing high-density polyethylene on April 6.
Braskem, which owns 75% of the project, said in a press statement that production of polyethylene "is part of the gradual start-up process initiated in December with the beginning of utilities area operations, followed by the [ethane] cracker in March. Braskem said it expects two other polyethylene units to begin operations by the end of April, with the goal of eventually reaching production capacity of 1.05 million tons per year. The polyethylene will supply Mexican and international markets.
The Etileno XXI project includes an ethane cracker integrated to three polyethylene plants, as well as utilities plants. A contract with Mexico's state-owned oil and gas company Pemex (Mexico City) assures the supply of ethane feedstock to the complex for 20 years, Braskem said. Construction of the ethane cracker, valued at $900 million, kicked off in late 2011.
The Veracruz complex won't be the new kid on the block in North America for long. Driven by inexpensive feedstock as a result of the shale gas boom, several ethylene and polyethylene facilities in the U.S. are nearing startup.
Trey Hamblet, Industrial Info's VP of Global Research for the Chemical Processing Industry, recently noted several large cracker projects in the U.S. already are in the construction phase and are estimated to bring up to 14 billion pounds of new capacity to the market over the next 12 to 24 months. Two other approved, funded projects are set for Louisiana soon thereafter. For related information, see March 16, 2016, article - Ethylene in the Spotlight as Projects Near Startup, Others Show Promise.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Braskem, which owns 75% of the project, said in a press statement that production of polyethylene "is part of the gradual start-up process initiated in December with the beginning of utilities area operations, followed by the [ethane] cracker in March. Braskem said it expects two other polyethylene units to begin operations by the end of April, with the goal of eventually reaching production capacity of 1.05 million tons per year. The polyethylene will supply Mexican and international markets.
The Etileno XXI project includes an ethane cracker integrated to three polyethylene plants, as well as utilities plants. A contract with Mexico's state-owned oil and gas company Pemex (Mexico City) assures the supply of ethane feedstock to the complex for 20 years, Braskem said. Construction of the ethane cracker, valued at $900 million, kicked off in late 2011.
The Veracruz complex won't be the new kid on the block in North America for long. Driven by inexpensive feedstock as a result of the shale gas boom, several ethylene and polyethylene facilities in the U.S. are nearing startup.
Trey Hamblet, Industrial Info's VP of Global Research for the Chemical Processing Industry, recently noted several large cracker projects in the U.S. already are in the construction phase and are estimated to bring up to 14 billion pounds of new capacity to the market over the next 12 to 24 months. Two other approved, funded projects are set for Louisiana soon thereafter. For related information, see March 16, 2016, article - Ethylene in the Spotlight as Projects Near Startup, Others Show Promise.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
