Paraguana Petrochemical Complex

It has been some months without posting, but surely the petrochemical news have been really interesting, so I expect to write more often from now on.

To get into shape for further posting, I will start by reviewing the current developments being done in the western part of Venezuela, specifically in Paraguana. Originally planned to be built in the east, the whole petrochemical complex was switched next to the biggest refinery in Venezuela (and biggest of the world until not so long).

The petrochemical complex will have the following plants:

- 800 kta of Polyethylene Terephtalate (PET)
- 600 kta of PTA (monomer for PET production)
- 600 kta of Styrene monomer
- 200 kta Acetic Acid
- 350 kta Monoethylene Glycol (MEG)
- 400 kta Polypropylene (several?)
- 250 kta Polyethylene (several?)

At first sight Pequiven's strategy is to take advantage of the availability of raw materials as well as the cost advantage of them.
As expected the developments are thought in the as close as the oil business as possible.

In following posts I will discuss how much of these developments will serve international and internal markets.

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.

PDVSA and PEQUIVEN, is it better for Venezuela to merge them?

Image source

Pequiven historically has been part of PDVSA business, it was about 8 years ago when Pequiven was decided to be completely independent from PDVSA. After this decision was made, the 3bn projects were announced and Venezuela as a petrochemical global player was announced.

Today, as it has been discussed here, some of the projects could be suspended, and there is some rumors about Pequiven going back as a filial of PDVSA.

If we take the examples of POC (Private Oil Companies), we can find both models, TOTAL's whose petrochemicals brand is somewhat independent and ExxonMobil whose petrochemical business is totally dependant to the rest of the group.

In the NOC (National Oil Companies) examples, Saudi Arabia has everything. SABIC (partially private company) is independent from Saudi Aramco and also Saudi Aramco itself is pursuing a very ambitious petrochemical project.

In short words, no structure has emerged as the optimal and crucial one. In the blogger opinion, the petrochemical business should be separated from the Refining and extraction business, however the plants should be completely integrated and sinergy should exist between them.

The nature of the petrochemical business is intrinsically different from oil and refining business. If the decision-making for both parties is under the command of the same office, it will harm the correct development of the business.

In this way of thinking, I am not excluding close cooperation between some office of PEQUIVEN and PDVSA, but complete subordination of the first should not happen.

Venezuela, joint ventures, petrochemicals and oil.

Image: aca

After reading short gossip, Shell has said that the big oil companies are not interested anymore in doing business in Venezuela. The politic environment in the country is simply not good.

Although for an oil business is not necessarily bad news (Saudi Aramco, the NOC from Saudi Arabia is capable to develop a project equivalent to the whole venezuelan oil production), for Venezuela and specially for its petrochemical business -in my opinion- is bad news.

The political partners of Venezuela, who have developed their petrochemical business are Brazil and Iran, but they are not technology licensors, and our petrochemical projects will be "their" petrochemical projects.

Como muestra un botón: Brazil (Braskem) its reconsidering the location of the PP plant (previously planned in Jose), will be the new location in Venezuela?

Works for PEQUIVEN's petrochemical projects suspended

Picture taken from here

Information in spanish here.

The petrochemical projects that we have been blogging about before, apparently has been suspended, since the workers in charge of the preparation of the land has been fired. And furthermore, but they have not received their payment.

This information could delay the projects. In the petrochemical business, as well as many others, being in the right place at the right time is very important. If the venezuelan economy is looking again to export, it should put more effort in the advantages that the country has.

P.S:. 180 people just for land preparation? sounds like a lot of people for me. But again... I am no expert.