Chavez boosts petrochemical output
Hugo Chavez has said Venezuela is to increase production of petrochemicals to become a world leader in the industry.
The president’s remarks came as the state petrochemical firm announced a plan to increase output from 11.5 million tonnes to 32 million tonnes a year by 2012.
“Venezuela has what it takes to be a world power in petrochemicals, and we’re going to be just that,” Chavez said at a swearing-in ceremony for new board members of Corporacion Petroquimica de Venezuela SA, commonly known as Pequiven.
Saul Ameliach, the company’s president, announced investments of nearly $5.4 billion in 22 petrochemical projects, including construction of new plants and upgrades to existing ones.
Increased earnings
Chavez began the event by helping to shovel cement to start construction of a plant that will produce ammonia and urea in the northern state of Carabobo.
He has said Pequiven intends to increase its earnings tenfold to around $12 billion within six years.
Chavez used a phrase that he ascribed to Chinese communist leader Mao Zedong, saying that Venezuela’s petrochemical industry “has started to walk with its own legs … and later it will fly with its own wings”.
The Venezuelan president also raised the idea of starting a South American petrochemical project with other governments.
“Why can’t we talk about Pequi-sur – the petrochemical company of the south?” he said.
Chavez also remarked to his energy minister during the speech that “we’re thinking about a strategic alliance in the area of petrochemicals with Brazil, with Bolivia”.
Chavez has also proposed a network of South American natural gas pipelines, and has signed preferential oil deals with friendly governments throughout Latin America and the Caribbean.