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 market by capitalizing on current conditions and maximizing the use of its 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 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 own 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, with 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 ethyl benzene 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, 2020, Pampa’s estimated share in the Argentine styrene, polystyrene and rubber markets amounted to 98%, 93% and 85%, respectively.

 

The following table shows the petrochemicals segment’s main indicators for fiscal years ended December 31, 2019 and 2020:

Sales volume (in thousand ton) 2019 2020
Styrene (incl. propylene and ethylene) 55 47
SBR 27 37
Polystyrene 44 47
Others 217 205
Sales destination(1) 2019 2020
Argentina 71% 66%
Outside Argentina 29% 34%

(1)Percentage calculated from sales in the Financial Statements.