BP PLC and Indian Oil Corp. Ltd. have signed a memorandum of understanding to consider a 50-50 joint venture to build a 1 million tonne/year acetic acid plant and associated gasification facilities for production of synthesis gas.
The plant, in Gujarat, would use BP’s Cativa XL technology and petroleum coke feedstock from Indian Oil. A feasibility study is in progress. The plant would have a targeted start date of 2015.
Indian Oil operates a 300,000 b/d refinery and petrochemical plant in Gujarat, at Koyali south of Ahmadabad.
BP this year expanded its work in India by agreeing to acquire 30% of 23 blocks operated by Reliance Industries Ltd. for $7.2 billion. The government has approved acquisition of interests in 21 of the blocks (OGJ Online, July 22, 2011).