14 November 2011 05:57 [Source: ICIS news]
SHANGHAI (ICIS)--UK oil giant BP has signed a framework contract agreement with the Zhuhai municipal government in China for the construction of a $600m (€432m) purified terephthalic acid (PTA) plant in Guangdong province – the company’s third at the site, a government source said on Monday.
The agreement on the 1.25m tonne/year plant was signed on Sunday, the government source said.
BP’s joint venture with Chinese conglomerate Zhuhai Fuhua Group – BP Zhuhai – will operate the plant. BP holds an 85% stake in the joint venture company, while Zhuhai Fuhua holds the remaining 15%.
BP officials could not be reached for comment on the project.
The third plant will increase BP Zhuhai’s total PTA capacity ?xml:namespace>
PTA is the preferred raw material used to manufacture polyethylene terephthalate (PET), a widely used polyester polymer for the production of textiles, bottles, packaging and film products.
BP’s PTA project is still subject to the approval of National Development and Reform Commission (NDRC), which oversees and approves infrastructure investments in
Construction of the new plant is expected to begin in the first quarter of next year, with commercial operations slated in the first quarter of 2014, the government source said.
The company currently operates two PTA plants in Zhuhai that have a combined capacity of
China's total PTA capacity this year stood at 20.07m tonnes, according to Chemease, an ICIS service in China.
($1 = €0.72)
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