Interviews with Petrocuyo and with Pampa Energía
Javier Sato, CEO
PETROQUÍMICA CUYO (PETROCUYO)
What is Petrocuyo’s production capacity today?
Petrocuyo stands as Argentina’s sole polypropylene (PP) producer. The company operates two facilities: one is in Luján de Cuyo, Mendoza, adjacent to the YPF refinery. This plant uses Novolen technology to produce copolymer and homopolymer PP. The second facility in Buenos Aires Province, Ensenada, was acquired from LyondellBasell and employs LIPP technology to produce homopolymer PP. This site also houses a PP compounding plant dedicated to the Argentine automotive industry. Petrocuyo produces 320,000 tons of PP and 30,000 tons of compounds annually.
How does Petrocuyo aim to leverage renewable energy and chemical recycling?
At Petrocuyo, we consume 75% of our energy from renewable sources like wind and solar. Our goal is to reach 100% renewable energy consumption. Additionally, we are involved in initiatives like Pellet Zero, which aims to eliminate plastic pellets from soil, and we also strongly promote the reuse of plastics waste as new raw materials.
We are addressing circularity by creating new virgin resins from recycled plastics through chemical recycling. This process converts plastics into raw materials by transforming them into pyrolysis oil, that will be transformed into new monomers, thus avoiding the use of equivalent petroleum quantities from refineries. Although we do not currently have a specific plant for this, we are exploring options to either build our own facility or collaborate with other companies to establish a chemical recycling plant.
Can you comment on Petrocuyo’s partnership with Unblock to prevent gas from being vented into the atmosphere?
We have partnered with Unblock to use natural gas that until now has been vented in isolated gas and oil fields since they have no access to gas pipelines. This association with Unblock uses these gases to generate electricity, which then powers computers that integrate into an artificial intelligence network or for cryptocurrency mining. By converting this gas, we prevent it from being vented into the atmosphere or burned without benefit.
Ariel Stolar, Commercial Manager – Petrochemicals
PAMPA ENERGÍA
Can you remind our readers of Pampa Energía’s footprint in Argentina?
Pampa Energía is a leading Argentinian energy company focusing on three main areas: power generation, exploration and production (E&P), and petrochemicals. The E&P and power generation sectors together account for approximately 95% of its EBIT. The remaining 5% comes from its petrochemical business unit. This unit operates a petrochemical plant in Puerto General San Martín that produces styrene, rubber, and other non-petrochemical products, and another plant in Zárate dedicated to polystyrene production.
Pampa Energía stands out as one of Argentina’s largest private energy companies in power generation, contributing 15% of the country’s energy supply. In E&P, it has seen substantial growth, driven by heavy investments in gas production, a part of which supports its petrochemical activities. The company has significantly increased its gas production by over 30% in 2023, and continues to invest in key areas in Vaca Muerta.
Pampa Energia’s petrochemical business is overshadowed by the larger scale of the other two sectors. This unit has not seen capacity expansion in the last few years, mainly due to the challenges of investing solely for export purposes. As such, Pampa Energía has grown through its local customer base.
How could Argentina use cheap gas and associated liquids to transform its petrochemical industry?
Argentina has a window of opportunity similar to the one that the US petrochemical industry had during the shale boom. Just as the US petrochemical sector thrived by leveraging low-cost raw materials from shale, Argentina could benefit from its own cheap gas and associated liquids such as ethane, butane, and propane.
As a result, Argentina could export products to the region in much larger volumes with competitive raw materials and gas prices and the necessary infrastructure. Consequently, some of our businesses could justify expansions to support export growth.