The government cuts off Braskem Idesa's gas supply


By CAPosts 02 December, 2020 - 09:28am 132 views

The petrochemical company Braskem reported that its Mexican operation Braskem-Idesa was notified by the government agency Cenegas of an interruption in the supply of natural gas. Braskem, a subsidiary of Odebrecht, said in September that it was talking with the Mexican state oil company Pemex about the future of an ethane supply contract to its plant in the southeast of the country, an agreement that President Andrés Manuel López Obrador has described as' leonine 'and it has cost the treasury millions of dollars. The Ethylene XXI petrochemical complex, led by Braskem with a 75% stake, began the process of interrupting operations at the plant, the Brazilian company reported in a notice to the stock exchange, adding that it was taking legal measures but could not estimate the date of resumption of activities

© Courtesy Braskem Idesa Braskem Idesa seeks a definitive solution to guarantee the supply of ethane for the Ethylene XXI

complex 'It is contrary to the public treasury, it is a contract with Odebrecht, that company is famous for extortion and corruption. So, 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 no longer be renewed, '' López Obrador explained during his morning conference on Wednesday. The president pointed out that the contract "is not breached, there is simply no longer a contract." 'In addition, there is a corruption complaint against this company and they have not wanted to reach an agreement, they want gas and ethane to continue to be sold to them at 25% of its cost in the market and that Pemex, the public treasury , the people of Mexico, subsidize them 75% of the gas, and also, charging fines, "he added. The national oil company Pemex accumulated millionaire penalties for failing to comply with the supply of natural gas to the Ethylene XXI petrochemical complex. The Mexican president has threatened on several occasions to cancel the agreement signed a decade ago, which included the construction of the petrochemical complex. However, Braskem-Idesa, where Mexican Grupo Idesa has a 25% stake, has said it will not renegotiate the contract. With information from Reuters.

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