BP sets up Zhuhai PTA facility to serve clothing, plastics firms

Energy giant expects unit to boost efficiency and reduce emissions

Global oil and gas giant BP Plc on Thursday commissioned a new facility in Zhuhai, Guangdong province, to cater to China's growing demand for purified terephthalic acid, a key raw material used in the manufacture of clothing, plastic bottles, packaging material and film products.

The third phase of BP Zhuhai, a joint venture between BP and Zhuhai Port Co, is the world's largest single-train PTA unit, the company said.

"We are committed to be a leader in the downstream business and the new PTA facility will be an integral part of our global petrochemical business," said Tufan Erginbilgic, chief executive of BP's downstream business.

China is the world's largest consumer of PTA and demand in the country is expected to rise significantly with the boom in PTA-related industries like textiles, bottled beverages and industrial fiber products, according to industry sources.

Soft drink output in China increased by 14 percent year-on-year in 2013 and 12 percent in 2014, according to the National Bureau of Statistics.

With completion of the new PTA facility, the combined annual production capacity at the BP Zhuhai plant has reached 2.7 million tons, making the plant one of the largest PTA manufacturers in the world.

According to sources, there has been an oversupply of PTA in the Chinese market during the past few years as more companies have entered the market.

Li Yong, operations manager of the BP Zhuhai plant, said: "The industry will need more high-quality PTA as it upgrades and focuses on higher efficiency and lower emissions."

The new PTA plant in Zhuhai is the first BP site that will incorporate the company's latest technologies, said Li.

"Some companies will be phased out from the Chinese PTA market due to the increased focus on clean energy and higher efficiency," he said.

The new facility will also help reduce the impact on the local environment by delivering higher energy efficiency and a lower level of emissions. Li said the processing unit will consume 40 percent less energy, compared with traditional PTA technologies. It also delivers 95 percent lower solid waste, 65 percent lower greenhouse gas emissions and 75 percent lower water discharge, bringing benefits both for the environment and the company.

Of BP's $4.5 billion investment in China over the past few years, more than half was invested in Guangdong, which is upgrading its energy structure by developing more clean and efficient energy, according to Yang Hengming, president of BP China.

"BP Zhuhai is a good example of our long-term commitment in China, especially in Guangdong, which accounts for a large proportion of our investment in China," said Yang.

Nick Elmslie, chief executive of BP's petrochemical business, said introduction of technology has played a significant role driving BP's business growth in China over the years.

"The newly launched unit employs BP's most advanced PTA manufacturing technology that will enable the company to deliver high-quality products to Chinese customers," he said.