Etileno XXI heralds new role for private capital in Mexico

Author: Michael Washburn | Published: 5 Feb 2013

The $3.2 billion financing secured by Brazilian-Mexican consortium, Braskem Idesa, for Mexico’s Etileno XXI petrochemicals complex signals a radical governmental shift away from monopolistic control of resources. This policy change could accommodate a broader role for private capital in Mexico.

Braskem Idesa's role in the harnessing of Mexico's ethane reserves would have been unthinkable a few years ago. The firm is a joint venture incorporating the pooled resources of Brazilian thermoplastic resin producer Braskem and Mexican petrochemical firm Grupo Idesa.

The financing and development of Etileno XXI, which will harness the vast ethane reserves of Veracruz in order to produce polyethylene, reflects an unheralded willingness by the Mexican authorities to allow a private producer to step into the breach in a sector...