# Braskem to Invest R$4.2 Billion in Ethane Expansion, Pending Financing and Petrobras Deal

*Petrochemical group’s Rio project tied to funding approvals and long-term gas supply contract under negotiation.*

- Published: 2025-10-24
- Section: Insights
- URL: https://brazilstockguide.com/insights/insights-braskem-ethane-expansion-rio-2025/

![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/Braskem-Rio-de-janeiro-petrochemicals-chemicals-plastic.png?fit=1024%2C683&ssl=1)

**By Brazil Stock Guide –** **Braskem (B3: BRKM5; NYSE: BAK)** said its board has approved a plan to invest about **R$4.2 billion (US$710 million)** to expand its **ethane-based ethylene and polyethylene capacity** at its **Rio de Janeiro petrochemical complex** — but the project’s implementation remains **conditional on securing financing** and finalizing a **long-term feedstock agreement with Petrobras**.

The expansion would add **220,000 tons per year of ethylene capacity** by **late 2028**, in line with Braskem’s ongoing transformation plan to boost competitiveness through a greater use of natural gas in its production mix. The estimated investment cost may vary by up to **30%**, reflecting the project’s early maturity stage. Braskem expects to combine new credit facilities with incentives from the **REIQ (Regime Especial da Indústria Química)** program for 2025 and 2026.

Chief Financial Officer **Felipe Montoro Jens** said the move underscores Braskem’s strategic shift toward gas-based production and operational efficiency. “This project strengthens the company’s competitiveness and sustainability goals,” he said in a statement.

If executed, the Rio expansion would represent a major step in Braskem’s broader industrial transition, reducing exposure to oil-based feedstocks and volatile nafta prices. The company said it will update investors as financing discussions and Petrobras negotiations progress.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/insights-braskem-ethane-expansion-rio-2025/