Mexican national oil company Petróleos Mexicanos (Pemex) and Braskem Idesa have reached agreement on an ethane supply deal, bringing to an end a year-long dispute that threatened to shutter the largest petrochemicals operation in Latin America.

Braskem Idesa

The Brazil-based Braskem SA unit said on Tuesday Pemex would supply 30,000 b/d of ethane to the Etileno XXI petrochemicals plant in Veracruz in the new pact. Braskem, in conjunction with Pemex and its subsidiaries, would also develop a $400 million ethane import terminal in Coatzacoalcos, Veracruz, for the plant’s supply.

Braskem Idesa, a joint venture between Braskem SA and Mexico’s Grupo Idesa, owns the Etileno XXI plant, which has capacity to produce 1.05 million tons/year of high- and low-density polyethylene. The plant uses...