Braskem Idesa announces a memorandum of understanding to discuss supply of ethane from Mexico

Braskem Idesa has signed a memorandum of understanding with Pemex, the Mexican oil and gas state-owned company, to discuss the ethane supply contract in the country and the development of an import terminal for the raw material. In addition, the company signed a 15-year gas transportation agreement with the state-owned agency Cenagás - the duration of this agreement is conditional on signing the final negotiation with Pemex. As a result, the Braskem Idesa petrochemical complex in Mexico has started receiving the natural gas transported by Cenagás which had unilaterally suspended deliveries in December.

The memorandum of understanding with Pemex establishes terms and conditions to discuss potential addenda to the supply agreement. Braskem Idesa stated in a notice to market that "is unable to predict the outcome of the discussions with Pemex", but will keep the market informed about relevant developments. The ethane supply agreement between Braskem Idesa and Pemex remains in force and valid, until any possible amendment.

Braskem Idesa is a company resulting from the association between Braskem and Idesa Group, one of the main Mexican petrochemical companies. The companies jointly developed the Ethylene XXI project in the state of Veracruz, the largest petrochemical complex in Latin America, for the production of ethylene and high and low-density polyethylene. The USD 5.2 billion project was the largest private investment in Mexico in the last decades.