BP and China’s Zhejiang Petroleum and Chemical Corp. (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 tpy acetic acid plant in eastern China.
The proposed facility – in Zhoushan, Zhejiang Province – would deploy BP’s 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).
The potential new plant, which would be an addition to ZPCC’s major integrated refining and petrochemical manufacturing complex at Zhoushan, would be BP’s largest acetic acid producing site in the world.
China is the world’s 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 BP’s 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 world’s fastest-growing markets for petrochemicals,” said Rita Griffin, Chief Operating Officer, BP Petrochemicals. “Combining BP Acetyls’ world-leading technology and know-how, with ZPCC’s 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 optimise its site structure and improve competitiveness, and together, we shall advance the high-quality development of China’s petrochemical industry.”
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 BP’s business footprint in China and to contribute to the country’s economic, environmental and social sustainability.”
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