Mexican petrochemical producer Mexichem's joint venture cracker at the Pajaritos complex in Veracruz state remains shut after an April explosion there, the company said Thursday.
CEO Antonio Carillo said during the company's third-quarter earnings results call that the ethylene plant is under a mechanical integrity evaluation, but it appears that no damage has occurred.
The explosion on April 20 at Petroquimica Mexicana de Vinilo's Pajaritos complex resulted in a force majeure event for several of PMV's products.
PMV, a joint venture between state-owned energy company Pemex and PVC-maker Mexichem, uses the bulk of its ethylene for the production of vinyl chloride monomer, which is used in PVC applications.
The cracker has an estimated capacity of 184,000 mt/year. Two out of three of PMV's facilities are located in Pajaritos, including the VCM and ethylene plants.
Carillo said restarting the cracker by the end of 2016 was not likely, but Mexichem would continue to discuss with its partners and evaluate the ethane supply in the region.
Mexico has been considered short on gas with the ramp up of Braskem Idesa's petrochemical complex, where Pemex has a 20-year contract to supply ethane feedstock.
"It will depend on the condition of the plant and the availability of raw material," Carillo said, adding that the ethane supply would be a key ingredient in the potential restart of the cracker.
"Mexichem & Pemex are in the process of evaluating several strategic options for the future of this business, and depending on the decisions then taken, PMV will evaluate the impacts on the rest of its assets in Pajaritos Complex," the earnings report said.
