BP and China's Ningxia Baota Chemical Fibre Co., Ltd. have signed an agreement to license BP’s latest generation purified terephthalic acid (PTA) technology, the third such deal agreed by BP.
Ningxia Baota intends to build a 1.2mn tonnes per annum (tpa) unit at the Ningxia Ningdong Energy and Chemical Zone in Ningxia Hui Autonomous Region, China, to produce PTA, the primary feedstock for polyesters used in the textile and packaging industry. The PTA plant is expected to come on stream in 2018.
“This is the first third-party PTA licence for BP in China since our recent decision to license the use of our market-leading technology. Baota is a renowned petrochemical company in China and I’m proud that they’ve chosen BP’s advantaged technology,” said Rita Griffin, chief operating officer of BP’s global petrochemicals business.
“We have now licensed this latest PTA technology in India, Oman and China – three significant growth markets – and have our own world-scale plant running at Zhuhai in Guangdong, China. We see great potential long-term in the polyester supply chain.”
“Our PTA technology has significantly lower capital and operating costs relative to conventional PTA plants. The technology is substantially more energy efficient, uses less water, and produces less solid waste. We continue to invest heavily in our proprietary technology to maintain BP’s PTA technology as the global leader and as the technology of choice for the future. Innovations are constantly being developed and these will be available to our licensees including Baota.” said Dan Leonardi, BP’s vice president for technology and licensing at the company's petrochemcials division.
BP’s has total (net to BP) petrochemicals capacity at 18 locations in ten countries of 18.3mn tpa including 6.7mn tpa of PTA.
Baota is a private company engaged in refinery, petrochemicals, finance, education and technology. Baota Petrochemical Group Co., Ltd. is the core parent company of Baota, which owns six second-level parent companies, one listed company and one fund management company and its 148 affiliated subsidiaries.
Baota has developed five petrochemical production bases in China, such as Yinchuan, Ningxia autonomous region, Zhuhai, Guangdong province and Kuishan, Xinjiang province. It owns a total of 20 billion yuan in assets and has 12,000 employees.
It has also been ranked 6th among the Top 100 Enterprises in Ningxia autonomous region and 39th among China Top 500 chemical enterprises.