Braskem-Idesa will take legal action for the cut of gas supply

Business

By CAPosts 02 December, 2020 - 05:06pm 51 views

The Braskem-Idesa company reported that it will take legal action after the cancellation of the natural gas supply by the Mexican government, which decided not to renew the ethane supply contract with the company. The cut, Braskem-Idesa said in a statement, caused the total suspension of the processes of its Ethylene XXI plant, located in the southeast of Mexico, with "negative repercussions" for its clients. 'There is no longer natural gas for the company because the contract expired. It was not interrupted, but it reached its deadline and it will not be renewed, 'said the president, Andrés Manuel López Obrador, in his usual morning press conference, without giving explanations for the decision.

© Photo: Jesús Almazán Cenagas blocked the entry of hydrocarbon despite a request from the firm to keep pumping for 48 hours to make a safe stop of its operations, the company warned.

Since taking office at the end of 2018, the administration headed by López Obrador has canceled or asked to review million-dollar energy contracts, a policy that has generated concern among the main investment partners in the country, such as the United States, the European Union and Canada. Braskem-Idesa - where the largest petrochemical company in Latin America has a 75% stake and the Mexican Grupo Idesa the remainder - said the National Center for Natural Gas Control (Cenagas) informed it on Monday that it would not renew the service contract of natural gas transportation. The consortium added that, the following day, Cenagas blocked the entry of the hydrocarbon despite a request from the firm to keep pumping for 48 hours to carry out a safe shutdown of its operations. "The actions of Cenagas have caused the total suspension of the plant's processes," Braskem-Idesa lamented. "The decision violates our rights including multiple legal provisions in force," he said. 'Braskem-Idesa, in compliance with its fiduciary and corporate responsibilities, must take the actions that exist within the framework of the law to defend its rights and assets.'

Source: MSN