The petrochemicals is vertically integrated into our gas operations. The goal is to maintain the Company’s position in the styrene market and maximize its assests’ production value chain, which 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 global supply and demand, which substantially impacts our results. Pampa is the only producer of monomer styrene, polystyrene, and elastomers in Argentina and 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 benzene production to obtain styrene and, in turn, a substantial volume of styrene to manufacture polystyrene and styrene butadiene rubber (‘SBR’).
The petrochemicals division consists of the Puerto General San Martín (‘PGSM’) integrated petrochemical complex, in the Province of Santa Fe, This complex has an annual production capacity of 50 thousand ton (‘kton’) of gases (liquefied petroleum gas – LPG -, which is used as raw material and propellant), 155 kton of aromatics, 290 kton of gasoline and refined products, 160 kton of styrene, 55 kton of SBR, 180 kton of ethylbenzene and 31 kton of ethylene. This segment also includes a polystyrene plant in Zárate, Province of Buenos Aires, with a production capacity of 65 kton. As of December 31, 2022, Pampa’s estimated share in the Argentine styrene, polystyrene and rubber markets amounted to 100%, 94% and 94%, respectively.
It is worth highlighting that exports in this segment are subject to an export duty which, under PEN Executive Order No. 1060/20, is 4.5% as from 2021 for most of its products (styrene, polystyrene, SBR and toluene), whereas others (such as naphthas, aromatics and solvents) export duties established by PEN Executive Order No. 488/20 remain in effect (8% throughout 2022).
The following table shows the petrochemicals segment’s main indicators for fiscal years ended December 31, 2021 and 2022:
|Sales volume (in thousand ton)||2021||2022|
|Styrene (incl. propylene)||57||55|
(1)Percentage calculated from sales in the Financial Statements.