Brazils braskem buying ethane from enterprise products. Brazilian companies linked to petrobras scandal plead. Brazilian conglomerate odebrecht controls braskem with a 38% stake, while petrobras holds 36%. Assets 1 gas cracker 1 pp 1 pe 1 hybrid cracker 2 pp 3 pe 1 pp pennsylvania 1 naphtha cracker 1 ethanol cracker 5 pe 2 pp 2 pvc 1 chloralkali 1 naphtha cracker 4 pe 1 pp 1 pvc 1 chloralkali 2 pp wesselin and schkopau 3 pp texas 1 pp w. Braskem to import us ethane braskem has signed a 10year contract with enterprise products partners for the supply of ethane imported from the us, starting in mid2017, braskem said in a statement on march 21. From 20, braskem will have another alternative source of raw material. Petrobras and braskem agree naphtha supply deal after nearly two years of negotiations, brazilian energy company petrobras has agreed a new fiveyear naphtha supply contract with petrochemical producer braskem. Its anchoring system is detachable, allowing the vessel to be moved to sheltered areas during hurricanes and storms, thus affording safety to the crew and to the environment and preserving the equipment. Braskem to modify bahia cracker, receive us ethane from. Braskem sa will soon start to negotiate a longterm contract to buy naphtha from its shareholder petroleo brasileiro sa, the chief executive of the brazilian petrochemical company said on thursday. Lyondellbasell in exclusive talks to acquire control of. Three out of braskems four brazilian ethylene crackers rely on the brazilian state oil company, petrobras, for most of their supplies of naphtha, an oilderived feedstock. Specifically with respect to the alleged losses caused to petrobras as a result of the naphtha supply agreement executed in 2009, braskem highlights the following information contained in the document filed against third parties.
Braskem reached a longterm naphtha supply contract with petrobras on 23 december. The petrochemical industry is based on raw materials acquired from the energy industries, such as naphtha derived from crude oil, natural gas liquids extracted from natural gas and coal. Naphtha contract no loss to petrobras, braskem confirms. Companies join forces for the development of advanced polyolefins for 3d printing and additive manufacturing. Braskem depends on naphtha from petrobras to feed its petrochemical plants and agreement would further help the company to strengthen its share in latin america region. Braskem will soon start to negotiate a longterm contract to buy naphtha from its shareholder petrobras. The material, the main ingredient for making petrochemicals, is. The adoption of ethane is part of a broader plan by braskem to reduce its dependence on naphtha acquired from brazilian statecontrolled oil company petrobras. Petrobras is the only producer of naphtha in brazil, while quattor and braskem were the sole consumers following the contract negotiation. Under the terms of the agreement, braskem will pay petrobras 102. Braskem and advanced laser materials alm announce partnership. Braskem has two major shareholders one being brazils statecontrolled oil and gas company petrobras, with a 36. Brazils petrobras considering sale of braskem stake. With this agreement, braskem will pay petrobras 102.
The cracker has a current ethylene capacity of about 540,000 tonnesyear. The longterm trend that makes braskem an awesome buy. Wood county on line to host ascent complex project the brazilian companies odebrecht and braskem are currently investigating the opportunity to develop the appalachian shale cracker enterprise ascent petrochemical complex project at parkersburg in the wood county of west virginia, usa. Asias next shift in petrochemicals to be led by china and. Us dept of justice investigates odebrecht, braskem over.
Braskem ceo fernando musa said the current fiveyear supply contract, which is one of the largest held by braskem with statecontrolled petrobras, ends in 2020. Braskem average from 20102018 increased reliability of naphtha supply through supplier diversification petrobras imported naphtha. Moodys comments that braskem new naphtha supply extension. If petrobras failed to sell its output locally, the state would be required to export the naphtha, incurring significant logistics costs. Indias haldia shuts naphtha cracker after ports declare force majeure 327. A joint ventures plans for an ethane cracker plant in west virginia has been paused. Indian oil shuts naphtha cracker and half of its panipat refinery for maintenance, resuming operations on sept. Braskem and partner odebrecht confirmed in a joint statement that they are reevaluating plans to build a. Braskem trades as an american depository receipt on the new york stock exchange, where the stock fell 2. Brazils minister of mines and energy, eduardo braga, said tuesday that petrobras must provide a public explanation for not yet announcing a new contract for the supply of naphtha to braskem, multiple brazilian media outlets reported.
Us investigates brazils odebrecht, braskem over naphtha contracts. Petrobras is credit negative because it fails to set the final conditions for petrobras longterm contract, although it reduces fuel supply risk. Braskem shares are publicly traded in brazil and united states, but the company remains closely held. Braskem eyes ethane with brazil stronger than mexico. Petrobras is the sole supplier of naphtha feedstock in brazil, critical to braskems petrochemical production. Naphtha market intelligence report powered by industry. Petrobras and braskem have been in talks for months on a deal that will secure naphtha supplies for latin americas largest petrochemicals producer.
In productivity and competitiveness, braskem will focus on the renewal of naphtha and maintaining propane contracts with petrobras and also on the start up of the chloralkali plant in alagoas. Meeting with investors rosana avolio october 18th, 2016. Its 18 laboratories and six pilot plants produce samples and test new solutions proposed by braskem. Braskem america wins the award for sixth consecutive year. Naphtha market 2018 latest trends, analysis, size, share. While a good amount of buzz at the asia petrochemical industry conference apic in sapporo, japan, on 1819 may was on the coming wave of us ethylene and derivatives capacity and its potential impact, asia itself is undergoing major structural. Braskem has also developed a process based on ethanol, creating biobased ethylene and green pe. Petrobras naphtha contract with braskem petrobras, 11. Petrobras sells naphtha to braskem, latin americas largest petrochemical maker. Brazilian staterun energy giant, petroleo brasileiro s. The unit would the largest of its kind in brazil, petrobras said, with a capacity to process 21m cubic metres mcmday. Besides sugarcane ethanol, which is used to manufacture the socalled green plastic, it will now use naphtha produced from postconsumer recycled plastic. The vessel platform is capable of processing 80,000 barrels of oil and 500,000 cubic meters of gas per day and can store 500,000 barrels of oil. Us dept of justice investigates odebrecht, braskem over naphtha contracts 31mar16 the us department of justice is investigating possible corruption in contracts among brazilian petrochemical company braskem, engineering conglomerate odebrecht and the countrys staterun oil company petrobras, as per reuters.
Braskem sa will soon start to negotiate a longterm contract to buy naphtha from its shareholder petroleo brasileiro sa, the chief executive of the. West virginia ethane cracker project postponed as it. Braskem, petrobras continue to negotiate longterm naphtha. Petrobras intends to divest stake in braskem by 2018end. Brazils petrobras extends shortterm deal to supply. Braskem, latin americas largest petrochemical company, has long relied on petrobras to supply it with naphtha, the main feedstock that it uses for producing plastics and other petrochemicals. Braskem eyes ethane with brazil stronger than mexico icis. The talks have been tricky after the two companies uncovered irregularities in a previous supply deal signed in 2009. Headquartered in philadelphia, braskem america is a wholly owned subsidiary of braskem s. Us investigates brazils odebrecht, braskem over naphtha. Lyondellbasell will examine braskems longterm naphtha supply contract with petrobras, which is set to expire in 2020. Internationalization through the acquisition of an important player in the north american market world scale player, technologically. Braskem america is the leading producer of polypropylene in the united states, with five production plants located in texas, pennsylvania and west virginia, and a technology and innovation center in pittsburgh. Sao paulo, march 03, 2015 moodys investors service comments that braskem s.
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