BP Amoco: Kertih acetic acid jv up mid-'00

26 October 1999 05:12  [Source: ICIS news]

KUALA LUMPUR (CNI)--The acetic acid plant being built by BP-Amoco and Petronas will come onstream in mid-2000, some three months later than planned. However, CNI was informed Tuesday, the delay will not affect customers.

In an interview, Brian Mitchell, CEO of the joint venture, BP-Petronas Acetyls, said the 400 000 tonne/year plant - in Kertih on peninsular Malaysia's east coast - is expected to be completed by end-1999 but will not be commissioned till mid-2000 instead of end-Q1. The delay is due to "incomplete infrastructure for feedstock and utilities".

(CNI understands that the utilities would be supplied by a central utilities facility being built in Kertih by Petronas. That facility, which would serve petrochemical plants in the area, was scheduled to be operational in September.)

Mitchell added that much effort is going into completion of the infrastructure, and he is confident of completion by mid-2000. 

He said the plant has been built on schedule, and at some 25% below budget. He added that it is the biggest greenfield project the company has built, and the only one designed specifically to use Cativa (a new, proprietary catalyst from BP-Amoco).

According to Mitchell: "That will allow us to maximise the potential of the technology, which will translate into productivity gains. We're positive about the business potential of the plant.

"We've known for some time that the commissioning would be delayed, and have been sourcing product from our plants in South Korea, the US and Europe to meet South East Asian demand for now."

Mitchell is optimistic about the petrochemical outlook in Asia. "This investment decision was taken at a difficult time. It is not a short-term decision, and reflects our confidence in the market's future here. Even in the short-term, we are seeing increasing demand for derivatives, and prices are picking up."

By: Anushia Kanagasabai
+65 6780 4359

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