BP and IndianOil have signed a memorandum of understanding to explore the potential to establish an acetic acid plant as a 50:50 joint venture in Gujarat, India.
The plant, which will produce one million tons of the acid a year, will be associated with gasification facilities for the production of synthesis gas.
The proposed plant will leverage BP's Cativa XL technology, while the gasification facilities will use Indian Oil's petroleum coke feedstock.
The feasibility study on the project is under way to confirm the exact configuration of the project, which is likely to come online in 2015.
Acetic acid is used in petrochemicals and paints.
