BP Confirms Plans for Second Zhuhai PTA Plant
Release date:
26 September 2005
BP is planning a second world-scale PTA (purified terephthalic acid) plant at their BP Zhuhai Chemical Company Limited (BP Zhuhai) site in Guangdong Province, China.
BP Zhuhai, a joint venture between BP (85 per cent) and Fu Hua Group (15 per cent), currently operates a 350,000 tonnes a year PTA plant at the site and will also own and operate the new plant.
The new plant, with a capacity of 900,000 tonnes a year, will be the first to employ BP’s latest generation PTA technology and, subject to final approval from the Chinese Government, is expected to come on stream at the end of 2007 to meet PTA demand growth in China.
Steve Welch, BP Group Vice President, Aromatics and Acetyls, said: “This investment will be the world’s largest single train PTA plant, built in the world’s largest and fastest growing PTA market with the world’s best technology – once again reinforcing BP’s commitment to the PTA business and to China.”
BP Zhuhai, a joint venture between BP (85 per cent) and Fu Hua Group (15 per cent), currently operates a 350,000 tonnes a year PTA plant at the site and will also own and operate the new plant.
The new plant, with a capacity of 900,000 tonnes a year, will be the first to employ BP’s latest generation PTA technology and, subject to final approval from the Chinese Government, is expected to come on stream at the end of 2007 to meet PTA demand growth in China.
Steve Welch, BP Group Vice President, Aromatics and Acetyls, said: “This investment will be the world’s largest single train PTA plant, built in the world’s largest and fastest growing PTA market with the world’s best technology – once again reinforcing BP’s commitment to the PTA business and to China.”
BP’s new technology enables scale and cost efficiencies which significantly reduce both capital cost and conversion costs. In addition, the new plant will deliver a step change in environmental performance, reducing both greenhouse gas emissions and other waste streams.
“The significantly reduced environmental and energy footprint of the new technology will help China meet its commitments to the environment and should set a new standard for others to follow in this important arena,” said Welch.
He added: “With the commercialisation of this new technology, we will actively pursue additional PTA investment options in China and extend our franchises in Europe and North America.”
Components of the technology to be used at Zhuhai are also applicable across BP’s global PTA system, enabling new globally competitive expansion options. BP is actively progressing major debottleneck projects in North America and Europe to take advantage of its enhanced technology position to meet regional demand growth and to improve BP’s leading supplier position in these regions.
“The significantly reduced environmental and energy footprint of the new technology will help China meet its commitments to the environment and should set a new standard for others to follow in this important arena,” said Welch.
He added: “With the commercialisation of this new technology, we will actively pursue additional PTA investment options in China and extend our franchises in Europe and North America.”
Components of the technology to be used at Zhuhai are also applicable across BP’s global PTA system, enabling new globally competitive expansion options. BP is actively progressing major debottleneck projects in North America and Europe to take advantage of its enhanced technology position to meet regional demand growth and to improve BP’s leading supplier position in these regions.
The Zhuhai project has already received approvals from the Chinese Environment Protection Agency and the project application has been submitted to National Development & Reform Commission (NDRC).
Upon final approval from the Chinese Government, the Zhuhai project will be built with significant local engineering, procurement and construction in addition to applying project experience from BP’s global system of 21 operating PTA units.
Upon final approval from the Chinese Government, the Zhuhai project will be built with significant local engineering, procurement and construction in addition to applying project experience from BP’s global system of 21 operating PTA units.
Notes to editors
- PTA is the preferred raw material used to manufacture polyethylene terephthalate, a widely used polyester polymer for the production of textiles, bottles, packaging and film products. In China, 90 per cent of PTA production is used in the textile industry. Government statistics show that China’s PTA consumption in 2004 exceeded 10 million tonnes, of which only around 40 per cent was supplied by domestic production.
- BP Zhuhai was formed as a joint venture between BP and Fu Hua in 1997. The venture’s first PTA plant, with initial capacity of 350,000 tonnes a year (tpa), began production in 2003 and has the capability to expand to 500,000 tpa. The site’s combined PTA production capacity after the completion of the new plant will be more than 1.2 million tpa, confirming Zhuhai as one of the major PTA production centres in China.
- BP has been a leader in PTA for over 30 years, with a global market share of 21 per cent on an equity basis (or 31 per cent including joint ventures). BP operates 21 PTA plants located in Asia, the Americas and Europe with a total combined annual production capacity of more than 9 million tonnes.
- BP is one of the world’s largest oil, gas and petrochemicals groups, generating 2004 profits of over $16 billion and revenues of over $280 billion. BP employs about 103,000 people worldwide and has activities in more than 100 countries. The company is one of the leading foreign investors in China, having invested over $3 billion in commercial projects in the country. Its activities in China include production and importation of natural gas, supply of aviation fuel, import and marketing of LPG, fuels retailing, lubricants blending and sales, and petrochemical manufacturing. BP employs over 3,000 staff in China, either directly or through joint ventures.
- Fu Hua Group Ltd was established in 1986 and became the first Zhuhai company to be listed on the Shen Zhen Exchange in the People’s Republic of China in 1993 with a registered capital of 345 million RMB and total assets of 1.2 billion RMB. Fu Hua Group, the former Fu Hua Polyester Fibre Plant, has been developed into a comprehensive enterprise group with main activities in the fields of harbour transportation, real estate development, import and export, pharmaceutical production and distribution.
Further information:
Name: Leo Wan
Location: BP Zhuhai
Phone : +86 (0)10 6437 6962
Location: BP Zhuhai
Phone : +86 (0)10 6437 6962
Name: Michael Zhao
Location: BP China
Phone : +86 (0)10 6437 6962
Location: BP China
Phone : +86 (0)10 6437 6962
Name: David Nicholas
Office: London
Location: BP Press Office
Phone : +44 (0) 20 7496 4708
Office: London
Location: BP Press Office
Phone : +44 (0) 20 7496 4708
Related links
BP Zhuhai Chemical Co. Ltd. is located in Zhuhai, Guangdong provence of China
