UPDATE 2-Braskem, Pequiven plan Brazil petrochemical plant

(Recasts, adds signing of accord)

SALVADOR, Brazil, May 26 (Reuters) - Braskem (BRKM5.SA)(BAK.N), Latin America's largest petrochemical company, and Venezuela's state-owned Pequiven are aiming to build a plant near Brazil's northeastern city of Salvador, the state governor said on Tuesday.

Venezuelan President Hugo Chavez has heavily promoted the development of petrochemicals as a way to create jobs in the OPEC nation, and is working with Braskem to build a massive olefins plant in eastern Venezuela.

The Chavez government often announces ambitious plans for energy projects, including more than 10 refineries around the world, without carrying them out.

Chavez and Brazilian President Luiz Inacio Lula da Silva met in Salvador on Tuesday to sign a series of agreements, including a memorandum of understanding for Braskem and Pequiven to develop joint projects, including a fertilizer plant.

Wagner said the cost of the proposed plant would be at least $1 billion.

Pequiven invited Braskem to join a $3 billion olefins project after Venezuela pushed ExxonMobil (XOM.N) out as a partner in 2006 following repeated delays in negotiations.

Braskem is also building a polypropylene plant in Venezuela. (Reporting by Raymond Colitt; Writing by Brian Ellsworth; Editing by David Gregorio)