Braskem Idesa (BI), a joint venture between Braskem and the Mexican company Idesa, has signed with PEMEX Transformación Industrial and PEMEX Exploración y Producción, an addendum to the ethane supply contract and with Petróleos Mexicanos, PEMEX Logística and other government entities, an agreement that sets out support measures for the construction of an ethane import terminal. This will ensure access to various sources of raw material for full capacity production and to supply local and international markets.

The new ethane import terminal to be built by Braskem Idesa will be located in Veracruz in the CIIT (Interoceanic Corridor of the Tehuantepec Isthmus) area, which is one of the Mexican government's initiatives for the development of the country's southwest and the energy sector.

As for the supply, the agreement changes the quantity currently in effect. PEMEX will supply a minimum volume of 30,000 daily barrels of ethane until the terminal starts operation, planned for the second half of 2024, or the deadline of February 2025 (in case of delays with licenses, extensions are possible), whichever happens first. BI will have the preemptive right to buy all the ethane PEMEX may have available and does not use up in its own production process by 2045, at international benchmark prices.

These agreements (subject to final approval by the Board of Directors of both parties, as well as BI creditors) settle pending contract issues that had been discussed by the parties and sets new volume and price commitments for the supply of ethane by PEMEX, consistent with current and future availability of the raw material in the country. The agreements will provide long-term sustainability to the factory located in Veracruz, Mexico.

Through the new agreements, Braskem Idesa will continue contributing towards the social and economic development of Mexico, just as the Ethylene XXI Complex has done since it began its operations in 2016. Braskem Idesa is the result of a USD 5.2 billion investment by Braskem and the Idesa Group, which has had a positive impact of more than USD 4 billion on Mexico's trade balance and has fostered the country's development by generating thousands of direct and indirect jobs.