Petrochemicals

The petrochemicals segment takes part in Pampa’s vertical integration with gas operations. The Company’s goal is to maintain its position in the styrene’s market by capitalizing on current conditions and maximizing the use of its own petrochemical raw materials. Our assets’ production covers a wide range of products, such as octane bases for gasoline, benzene, aromatic solvents, hexane and other hydrogenated paraffinic solvents, propellants for the cosmetic industry, monomer styrene, rubber, and polystyrene for the domestic and foreign markets.

The petrochemicals market where Pampa competes is influenced by the supply and demand of petrochemical products in the global market, which has a strong impact on our results. Pampa is the only producer of monomer styrene, polystyrene and elastomers in Argentina, as well as the only integrated producer of goods ranging from oil and natural gas to plastics. As part of its efforts to integrate operations, it uses an important volume of its own benzene production to obtain styrene and, in turn, a substantial volume of styrene to manufacture polystyrene and SBR.

As of December 31, 2019, the petrochemicals segment consists of the Puerto General San Martín port (‘PGSM’) integrated petrochemical complex, in the Province of Santa Fe, with an annual production capacity of 50 thousand tons of gases (LPG, which is used as raw material, and propellants), 155 thousand tons of aromatics, 290 thousand tons of gasoline and refined products, 160 thousand tons of styrene, 55 thousand tons of SBR, 180 thousand tons of ethyl benzene and 31 thousand tons of ethylene. This segment also includes a polystyrene plant in Zárate, Province of Buenos Aires, with a production capacity of 65 thousand tons.

As a result of the falling demand and with the purpose of optimizing business results, in April 2018 the Company decided to discontinue operations of the BOPS (bi–orientated polystyrene) plant, with a production capacity of 14 thousand tons, as well as of the San Lorenzo ethylene plant, with a production of 19,000 tons/year, in January 2019.

 

The following table shows the petrochemicals segment’s main indicators for fiscal years ended December 31, 2017 and 2018:

Technical Data 2017 2018
Styrene (incl. propylene and ethylene) 67 64
SBR 33 26
Polystyrene (incl. BOPS) 67 50
Others 291 215
Total revenues (in thousand ton) 458 355
Sales Destination(1) 2017 2018
Argentina 74% 70%
Outside Argentina 26% 30%

(1)Percentage calculated from sales in nominal terms.