March 27, 2006
Venezuela aims for major petrochemical expansion

(AP Worldstream) - "Venezuela will sharply increase production of petrochemicals in the next several years to become a world leader in the industry, President Hugo Chávez said.

Chávez remarks came as state petrochemical firm president Saul Ameliach announced a plan to increase output from 11.5 million metric tons (12.7 million tons) to 32 million metric tons (35 million tons) a year by 2012.

'Venezuela has what it takes to be a world power in petrochemicals, and we're going to be just that,' Chávez said at a swearing-in ceremony for new board members of Corporacion Petroquimica de Venezuela SA, commonly known as Pequiven.

Ameliach announced investments of nearly US$5.4 billion (about A4.4 billion) in 22 petrochemical projects, including construction of new plants and upgrades to existing ones. Officials previously had spoken of plans to invest some US$3.9 billion (A3.2 billion) in the next six years.

Chávez began the event helping to shovel out cement to start construction on a new plant that will produce ammonia and urea in the north-central state of Carabobo.

Chávez rattled off a long list of products that oil-producing Venezuela can manufacture with its petrochemicals, from fertilizers to plastics. He said Pequiven aims to increase its earnings tenfold, from US$1.2 billion (A1 billion) today to some US$12 billion (A9.9 billion) within six years (...)

Chávez also raised the idea of starting a South American petrochemical project with participation by other governments.

'Why can't we talk about Pequisur _ the petrochemical company of the south?' Chávez remarked to his energy minister during the speech. 'We're thinking about a strategic alliance in the area of petrochemicals with Brazil, with Bolivia.'

Chávez also has proposed a network of South American natural gas pipelines and has signed preferential oil deals with friendly governments throughout Latin America and the Caribbean (...)

Chávez said Brazil and other countries also could be invited to play a role, and that businesspeople from countries including Russia , Iran , Qatar and the U.S. had expressed interest in investing in Venezuela 's petrochemical projects".