Petrobras and Braskem have agreed on a five-year naphtha supply contract, the Brazillian firms said on June 10. Under the agreement, Petrobras will provide Braskem with at least 650,000 tons/year of naphtha, with a possible additional volume of up to 2.8 million tons. This deal replaces the current contract that will expire in December.
Braskem stated that the agreement would ensure its competitiveness in the value chain and increase investments in the petrochemical sector which is essential to Brazil’s economic growth. The petrochemical company expected demand to fall 5%-6% in 2020 due to the COVID-19 pandemic. The company’s official previously said that Brazil’s containment measures had contributed to a 20% tumble in sales in April.
