Brazilian petrochemical producer Braskem announced a new gas supply agreement between its Mexican subsidiary Braskem Idesa and Pemex to build a $400mn ethane terminal. Idesa would meet its ethane requirements with the imports from the new terminal. Braskem also reached a new deal for the supply of at least 30,000 barrels of ethane per day until the new import terminal is operational. The agreement marks the settlement of a long-lasting conflict between Idesa and Pemex, as Mexico’s government weighed canceling the Pemex ethane supply contract with Braskem Idesa in 2021 due to its high costs. According to Braskem, the new contract additionally gives Idesa the right to acquire all of the ethane that Pemex does not utilize but has available until 2045 at prices aligned with international markets.
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