Mexican polyethylene producers seek to import ethane to address ethane shortages

Braskem Idesa, a Mexican polyethylene producer, said on Friday that it was promoting a dedicated ethane import terminal and other projects to address the region’s long-standing shortage of raw materials.

The move comes as state-owned Mexican National Petroleum Corporation (Pemex) continues to tackle production and exploitation problems, which have led to insufficient supply of Braskem Idesa and reduced production at its factories.

“The lack of ethane in Mexico’s petrochemical industry has prevented the immediate solution to the shortage in terms of production.” Cleantho de Paiva Leite Filho, Director of Business Development, said. “So, what can you do in the short term? For example, build or extend the import terminal.”

Leite also mentioned more long-term solutions centered on Mexico’s existing resources, but said these options, such as upstream investment and upgrading of existing gas processing infrastructure, would take longer and could bring higher costs.

Leite said Pemex would be a key player in any future choice, adding that the state-owned energy producer was already taking steps to make up for the ethane shortage in the long run.

Pemex officials did not respond to repeated requests for comment, but Leite said the company had accepted the import terminal project. So Braskem Idesa “is confident that this gap will be solved nationwide,” Leite added.