- Transportation & Logistics
Braskem Idesa takes stake in Mexico’s ethane import terminal
Braskem Idesa has signed an investment agreement with Advario for a joint 50% stake in the construction and operation of an ethane import terminal in Mexico, called Puerto Mexico Chemical Terminal (Terminal Química Puerto México or TQPM, in Spanish).
The project’s total investment will be approximately USD400 million. Construction will begin in July 2022, and completion is targeted by the end of 2024.
The terminal will be developed in the municipalities of Coatzacoalcos and Nanchital, in the state of Veracruz. The 10-hectare site is in the northern part of the Pajaritos lagoon and will be connected to Braskem Idesa’s complex via an 11-kilometre pipeline. A new jetty will also be built in the Pajaritos lagoon with an exclusive area for operations with cryogenic ethane.
This important infrastructure project will be part of the Interoceanic Corridor of the Isthmus of Tehuantepec, one of the Mexican government’s main development initiatives.
TQPM is a greenfield project, as it will be constructed entirely in an area without existing infrastructure. The project will positively impact the city of Coatzacoalcos and Nanchital in terms of job creation, contracting local suppliers of goods and services, and by creating new logistics infrastructure for the region and the state of Veracruz. The terminal is expected to generate approximately 2,000 jobs during construction, and the increased availability of ethane will also support other important production chains in the country’s petrochemical industry.
Advario is the Dutch division of the German company Oiltanking which specializes in designing, building, financing, and operating storage and logistic infrastructure for bulk liquid products, including cryogenic gases. Its history and experience spans over 50 years. Advario’s portfolio comprises world-scale storage terminals located strategically in key hubs across the globe.
Braskem Idesa is a Mexican company formed from the partnership of Braskem (Brazil), the largest petrochemical company on the continent producing thermoplastics, and Grupo Idesa, a leading Mexican petrochemical company. Together, they developed a petrochemical complex to produce ethylene and high- and low-density polyethylene in the municipality of Nanchital, Veracruz in Mexico. The facility, which began operating in 2016, produces slightly over one million tons per year of ethylene and polyethylene.
“This partnership allows Braskem Idesa to work with one of the most distinguished companies in the sector, adding technology, experience, and recognized safety excellence to TQPM’s operations. We are delighted with the announcement of this joint venture,” said Stefan Lepecki, CEO of Braskem Idesa.