The terms of a new ethane supply agreement between Mexican national oil company Petróleos Mexicanos (Pemex) and petrochemical firm Braskem Idesa remain under discussion, despite indications from the government that a new agreement had been finalized, according to management of Braskem Idesa parent Braskem SA.

Braskem Idesa

The current 20-year, take-or-pay/supply-or-pay contract for Pemex to supply 66,000 b/d of ethane to the Etileno XXI polyethylene plant in Veracruz state remains in effect, Braskem CFO Pedro Freitas said during a fourth quarter 2020 earnings call. 

Mexico’s Centro Nacional de Control del Gas Natural (Cenagas), operator of the Sistrangas national pipeline grid, unilaterally cut off natural gas transport service for the plant in December amid complaints from Mexico’s...