Braskem to debut new ethane carrier as Mexican terminal nears completion

Brazilian petrochemical company Braskem has unveiled an US$80mn ethane carrier that will transport the key feedstock to its giant plastics plant in the Mexican state of Veracruz.

Built in China, the Brilliant Future will bring ethane from the US to the company's US$5.2bn plant in the port of Coatzacoalcos, Braskem said in a press release on Friday.

Ethane is used to produce polyethylene.

A new ethane import terminal at the site is due to start operations in the coming months.

The terminal will have capacity of up to 80,000b/d of ethane.

The US$580mn import terminal will allow Braskem to replace ethane from Mexico's national oil company Pemex with more reliable supply from the US.

A second vessel will start plying the US-Mexico route in June, Braskem said.

At a capital markets day in 2024, Braskem officials said that completion of the import terminal would potentially allow the company to expand its operations in Mexico.

Supply problems

Braskem began producing polyethylene in Coatzacoalcos in 2016 via its Braskem Idesa joint venture with Mexico’s Grupo Idesa.

Since it was opened, output at the plastics plant has been hampered by shortfalls in ethane supply from Pemex.

In its production and sales report for 2024, published earlier in February, Braskem said the utilization rate of its Mexican plant had dropped to 77% in Q4 from 84% a year earlier.

Braskem said the fall was "mainly explained by the lower supply of ethane by Pemex."

Still, the company posted an increase in the amount of polyethylene it sold in Mexico in 2024. Sales volumes rose 5% from 803,400t to 846,000t.

Braskem said the increase was mainly driven by exports.

Its Mexican plant exports polyethylene to more than 40 countries.