YPC and BP Kicks off Acetic Acid Project in Nanjing

On March 23rd, 2007 Sinopec Yangzi Petrochemical Co., Ltd. (YPC)
and BP Corporation of the UK held the ground breaking ceremony
and announced the formal start of the 500 thousand t/a acetic
acid project in Nanjing, Jiangsu province of eastern China. This
joint venture project is jointly invested by BP and YPC, among
which the latter is a subsidiary of Sinopec. Two parties both
hold a 50% share.
   With methanol and carbon monoxide as the raw materials, the
newly built unit will adopt the world's leading patent
carbonyl-to-acetic acid technology provided by BP. The
technology has the advantages of high selectivity, high reaction
rate, fewer by-products and low energy consumption. The project
is planned to be put into commercial operation in the first half
of 2009.  
   As a mediate chemical, acetic acid is extensively used in the
fiber, paint, adhesive, pharmaceuticals and printing ink
sectors. China is a country with fast acetic acid market
development. In May 2004, early during the visit of Premier
Wenjiabao to UK, Sinopec signed the frame agreement with BP to
establish a JV in Nanjing. In March 2005, the two parties signed
the JV contract. On November 3rd, 2005 Nanjing YPC BP Acetyls
Co., Ltd. was formally established. Besides the Nanjing JV
project, BP and Sinopec also jointly operate Yangtze River
Acetyls Co., Ltd. (YARACO) in Chongqing, southwestern China.
YARACO was established in December 1995 and announced the
plant's acetic acid production capacity was successfully
expanded from 200 000 t/a to 350 000 t/a during YARACO's 10th
anniversary ceremony in December 2005 (CCR2005, No. 34).