Braskem approves R$4.2B ethylene expansion, +220k t/yr by 2028
Braskem S.A. approved an investment to expand the ethane-based capacity of its Rio de Janeiro petrochemical complex by 220 thousand tons of ethylene per year, with equivalent polyethylene volumes.
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Rhea-AI Filing Summary
Braskem S.A. approved an investment to expand the ethane-based capacity of its Rio de Janeiro petrochemical complex by 220 thousand tons of ethylene per year, with equivalent polyethylene volumes. The Project’s estimated cost is approximately R$4.2 billion, which may vary by up to 30% at the current stage.
Implementation is targeted for completion by the end of 2028 and is conditional on obtaining financing, in addition to resources already approved under the REIQ Investimentos benefit for 2025 and 2026. The Board also approved contracting the additional ethane feedstock through a long-term supply agreement with Petrobras, subject to finalizing terms.
Positioned within Braskem’s Transformation Plan, the Project aims to enhance competitiveness by increasing the use of gas in the feedstock mix for polyethylene production. The company plans to keep the market informed of material developments.
Insights
Large capex to add 220k t/yr ethylene by 2028, financing pending.
Braskem plans a capacity addition of 220 thousand tons/year of ethylene (and equivalent polyethylene), budgeted at R$4.2 billion with a possible 30% variance. This targets the Rio de Janeiro site and aligns with its Transformation Plan to increase gas usage in the feedstock matrix.
Execution depends on securing financing and completing a long-term ethane supply contract with Petrobras. The company also cites resources approved under REIQ Investimentos for 2025–2026. These conditions indicate staged funding and supply assurance are prerequisites.
If finalized, the project is expected to be completed by end of 2028. Actual impact on output and costs will hinge on financing availability and definitive supply terms; the company states it will update the market on material developments.
FAQ
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What did Braskem (BAK) announce in its 6-K?
How much will Braskem invest and what is the variance?
What is the expected timeline for Braskem’s expansion?
What conditions must be met before the project proceeds?
Who will supply the additional ethane feedstock?
How does the project fit Braskem’s strategy?
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