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BP explores creation of world-scale acetic acid joint venture

October 23/2019

MOSCOW (MRC) -- BP and Chinas Zhejiang Petroleum and Chemical Corporation (ZPCC) have signed a memorandum of understanding (MOU) to explore the creation of a new equally-owned joint venture to build and operate a 1 million ton per year (Mtpy) acetic acid plant in eastern China, according to Hydrocarbonprocessing.

The proposed facility - in Zhoushan, Zhejiang Province - would deploy BPs CATIVA XL technology to produce acetic acid, a versatile intermediate chemical used in a variety of products such as paints, adhesives and solvents. It is also used in the production of purified terephthalic acid (PTA) of which BP is a leading global manufacturer.

The potential new plant, which would be an addition to ZPCCs major integrated refining and petrochemical manufacturing complex at Zhoushan, would be BPs largest acetic acid producing site in the world.

China is the worlds largest acetic acid market and accounts for more than half of global production capacity. BP is a long-term investor in China with a number of existing petrochemical manufacturing facilities in the country, including two existing acetic acid joint ventures.

The MOU was signed by Nigel Dunn, chief executive of BPs Global Acetyls business and Luo Wei, executive director of ZPCC and was witnessed by Xiaoping Yang, BP China Chairman and President, Li Shuirong, Chairman of ZPCC and senior officials from Zhejiang Province. The signing took place at the third International Petroleum and Natural Gas Enterprises Conference (IPEC 2019) in Zhoushan.

"This is a significant new opportunity for BP in China, one of the worlds fastest-growing markets for petrochemicals," said Rita Griffin, chief operating officer, BP Petrochemicals. "Combining BP Acetyls world-leading technology and know-how, with ZPCCs world-class mega complex and local expertise, our new partnership will help meet demand for these important products."

Li Shuirong, Chairman of ZPCC said: "ZPCC is delighted to sign this MOU with BP to explore this opportunity for acetic acid production. I am confident that this cooperation will help ZPCC to optimize its site structure and improve competitiveness, and together, we shall advance the high-quality development of Chinas petrochemical industry."

BPs proprietary CATIVA XL technology requires significantly lower capital investment and offers superior operating performance when compared with other acetic acid technologies. In support of BPs commitment to advancing a low carbon future, CATIVA XL technology is also more energy efficient and has a high production reliability track record, which also contributes to a lower carbon footprint.

Xiaoping Yang, BP China Chairman and President, added: "We are excited at the potential of this new partnership with ZPCC, a further demonstration of our long-term commitment to the Chinese market. With this proposed investment, we will continue to expand BPs business footprint in China and to contribute to the countrys economic, environmental and social sustainability."

As MRC reported earlier, BP Plc is expected to resume operation at its small gasoline-producing fluidic catalytic cracking unit (FCCU) at its 430,000 barrel-per-day (bpd) Whiting, Indiana, refinery in late October after about a month of the overhaul. The company began a planned overhaul of the small FCCU on 19 September.

PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.

According to MRC's DataScope report, Chinese bottle grade PET deliveries to Russia increased 34% in the first eight months of 2019 to 95,600 tonnes. China accounted for 90% of the total imports, compared to 85% a year earlier.
August imports of material from China decreased by 41% to 7,600 tonnes from 12,800 tonnes in July. Jiangsu Sanfangxiang, Yisheng, Wankai and Sinopec were the leading Chinese suppliersof material to the Russian market.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
Author:Margaret Volkova
Tags:crude and gaz condensate, PET-granulate, terephthalic acid, petrochemistry, adhesives, packaging, paints and coatings, BP Plc, Zhejiang Petroleum and Chemical Co (ZPCC), China, Russia, USA.
Category:General News
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