IndianOil, BP MoU for acetic acid plant

November 23rd, 2011 - 8:09 pm ICT by IANS  

New Delhi, Nov 23 (IANS) State-run Indian Oil Corporation (IOC) and British Petroleum (BP) Wednesday entered into a memorandum of understanding (MoU) to explore possibilities of the two establishing a joint venture company (JV) for setting up an acetic acid plant in India.

“BP and IndianOil have signed an MOU to work together to explore the potential for establishing a 50:50 JV to invest in a 1 million tonne per annum acetic acid plant in Gujarat,” the state-run oil firm said in a statement.

According to the statement, the proposed project would also involve gasification facilities for production of synthesis gas.

“The proposed acetic acid plant would employ BP’s latest cativa xl technology, whilst the gasification facilities would utilise petroleum coke feedstock from IndianOil,” the statement said.

IOC said that a joint feasibility study is underway to affirm the exact configuration of the project, which is being targeted for 2015.

Acetic acid is used in various industries like pharmaceuticals.

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