Oil and Gas

Mexico evaluates if ethane supply contract between Pemex, Braskem-Idesa can be canceled

MEXICO CITY, Feb 26 (Reuters) - Mexico’s President Andres Manuel Lopez Obrador said on Wednesday his government was evaluating whether an ethane supply contract between state oil firm Pemex and the Braskem-Idesa consortium can be canceled.

“We’re investigating if the contract can be canceled, if it can be done legally ... there is an ongoing investigation,” said Lopez Obrador at his daily press conference.

Under the contract’s terms, Pemex has had to supply ethane well below current market prices to the Braskem-Idesa plant near the Gulf coast port of Coatzacoalcos.

The plant is operated by a consortium in which Brazil’s Braskem has a 70% stake and Mexico’s Grupo Idesa holds the remainder. (Reporting by Anthony Esposito; Editing by Bernadette Baum)