BP to Invest in Chinese Petchems Firm
BP plc reported Tuesday that it has signed a strategic cooperation agreement with China Resources Chemical Innovative Materials Holdings Limited (CRC) to jointly explore opportunities to improve cooperation along the polyester value chain.
The supermajor also stated that it has agreed to invest in and become a shareholder of CRC, which is a major producer of polyethylene terephthalate (PET) plastic in China and a purified terephthalaic acid (PTA) customer of BP’s. According to BP, the companies under the newly signed deal will look to strengthen their cooperation on PTA sourcing, work together along the polyester value chain and seek other collaborative opportunities.
The polyester plastic PET is commonly applied in beverage and food packaging, and PTA is one of the key raw materials used to produce it, BP explained.
“BP and CRC already have a close and longstanding relationship and we look forward to building on it further,” Luis Sierra, CEO for BP’s Global Aromatics Unit, remarked in a written statement. “We can see opportunities to work together to streamline and increase collaboration along the polyester value chain, improving flexibility and efficiency and creating value.”
BP noted that China is home to the company’s largest PTA production site, which is located in Zhuhai, Guangdong province and boasts a capacity of 2.4 million tonnes per annum (mtpa). It also stated that CRC’s polyester production centers – based in Zhuhai and Changzhou, Jiangsu province – can manufacture 2.2 mtpa of PET.
“BP is CRC’s important strategic partner in the polyester value chain,” commented Zhu Zhenda, CRC managing director. “Through deepened cooperation, we anticipate effective integration of our resources, bringing advantages for both partners. We will work together to develop innovative technologies, new products and applications for our customers in future.”
To contact the author, email mveazey@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea