Sunday, April 4, 2010

Update - Braskem - Pequiven is reconsidering polyolefin plant location in Venezuela

Image source

According to this source

Braskem intention is to relocate the PP plant from Jose petrochemical complex to Falcon. The production capacity its expected to be now 300 mta (from previous 450 mta). This reduction in the production capacity is indeed strange. I could only speculate in the reasons of it.

- Lack of propylene.
- Lack of market for high volumes of PP.
- To reduce capital expenses.

The 3bn project is still going, but IMO, somewhat delayed. The reason of the delay? Difficulties for funding and global crysis. This information was provided by Braskem CEO, so it can be trusted.

Update: the third reason appear to be the correct one, if built in Jose, an propane dehydrograntion plant is needed. In order to reduce the capital expenses, is it better to move the project to Falcon and use the FCC propylene rich streams.

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