Argentina is stepping up expansion of its petrochemical industry.
Pasa Petroquimica Argentina SA, Buenos Aires, and Dow Chemical Co. signed an agreement to study feasibility of a 50-50 venture to produce styrenic polymers in Argentina.
Dow's Argentinian unit produces styrene butadiene (SBR) latex, acrylic compounds, and agrichemicals. Pasa produces ethylene, styrene, polystyrene, SBR rubber, and nitrogen fertilizers.
Separately, Pasa signed a contract with state owned Yacimientos Petroliferos Fiscales to supply virgin naphtha for 20 years to support production of as much as 200,000 metric tons/year of styrene.
Pasa placed the value of the contract at $1.5 billion. Feedstock costs are tied to the international market clearing price of virgin naphtha, government rules on petrochemical feedstocks notwithstanding.
Pasa is spending more than $120 million to expand its petrochemical complex at San Lorenzo, Santa Fe state.
Involved are revamps to boost capacities for benzene to 150,000 tons/year from 80,000 tons/year, ethylene to 55,000 tons/year from 25,000 tons/year, styrene to 170,000 tons/year from 82,000 tons/year, plus construction of a new 187,000 ton/year ethylbenzene plant.
Much of the increased production will be available for export. Pasa's current export sales are about $50 million/year.
Pasa is jointly owned by Argentina's Cia. Naviera Perez Companc, South Africa's Anglo American, and Uniroyal Chemical Co.
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