Brazilian petrochemical company Braskem (NYSE: BAK) is planning to invest between US$2bn and US$3bn to install a 1Mt/y polyethylene plant in Bolivia, according to the company’s international projects director Carlos Brenner, Bolivian and Brazilian press reported.

Brenner said studies would determine the final project and investment.

The plant is expected to be installed in Puerto Suárez, in Santa Cruz department, which borders the Brazilian state of Mato Grosso do Sul.

The announcement was made after a meeting with the president of Bolivia’s state hydrocarbons company YPFB, Carlos Villegas, in La Paz, Bolivian state news agency ABI reported.

Brenner added that the company intends to industrialize ethane, derived from natural gas, to produce the plastic resin.

In order to make the project feasible, Bolivia needs to carry out part of the investment to separate the ethane from the gas, while Braskem will be responsible for the rest, according to Brenner.

After a decision is made, the project would require five years to implement.

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