BP has entered into an agreement to license its latest generation technology for the production of purified terephthalic acid (PTA) to China’s Dongying Weilian Chemical Co., Ltd.
Weilian Chemical is a subsidiary of Dongying United Petrochemical Co., Ltd, one of the leading manufacturers and distributors of petroleum and petrochemical products in China. Weilian Chemical intends to build a 2.5 million tonnes per annum PTA production unit at the Dongying Port Economic Development Zone in eastern Shandong province, adding to Dongying United Petrochemical’s existing refineries and paraxylene (PX) facilities portfolio.
Weilian Chemical selected bp’s proprietary PTA production technology for its new PTA unit after a competitive, global bidding process initiated in 2019. The design phase for the unit is underway and is expected to be completed during the first half of 2020. First production is anticipated by the second quarter of 2022.
The key characteristics of the technology licensed to Weilian Chemical have been proven at bp’s Zhuhai plant in southern China, bp’s largest PTA production facility worldwide so far. Based on internal comparisons with conventional PTA technology, there are significant reductions in both operational costs and capital costs, which should help achieve high investment returns.
The electricity generated by the Zhuhai plant from applying bp’s technology is expected to result in a surplus that can be transmitted to the external power grid, supporting the energy needs of the local community. bp’s anaerobic wastewater technology allows for increased treatment capacity, while its world-class compression process reduces land use.
“We are pleased to be able to provide bp’s most advanced PTA technology, bpPTAg5, to Weilian Chemical, helping our partners to grow their business to meet the demand for high quality products with a lower carbon footprint. Together, we hope to lay strong foundations for future cooperation,” said Rita Griffin, chief operating officer, bp Petrochemicals.
