Brazil and Venezuela Embark on US$ 5 Billion Petrochemical Project

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Chavez and Lula at the Margarita Summit Brazil and Venezuela launched yesterday, April 16, in the municipality of Barcelona, in the Venezuelan state of Anzoátegui, the foundation stone for the joint construction of a petrochemical complex.

The agreement was signed by companies Braskem, from Brazil, and Pquiven, from Venezuela. The investment, of approximately US$ 5 billion, will be divided in equal parts by the two countries.

"Once a hub such as this one is ready, then Brazil and Venezuela will have technology to take other hubs to other countries in the world," said president Luiz Inácio Lula da Silva during the signing ceremony.

To the president, this is not just about a partnership between Venezuela and Brazil. In his assessment, from a petrochemical plant, knowledge will be generated that will transform Latin America in an exporter region of high value-added products.

"It is important to benefit from the political and economic moment the country is going through, so that Venezuela can transform its potential for natural gas and oil."

The Venezuelan president, Hugo Chávez, endorsed the speech of his Brazilian colleague, but claimed that, although Latin America has the potential to cater to the region's energy demands, investments and technologies must be sought in order to do so.

Chávez informed that Latin American countries consume 7.5 million barrels of oil per day, an amount that should increase by 22% over the next few years. From Barcelona, the presidents headed to Isla Margarita, where the 1st South American Energy Summit is being held. The Summit should end today.

ABr

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