It is destination Gujarat for UK-based BP (British Petroleum) and Indian Oil Corporation, with the signing yesterday of a memorandum of understanding for setting up a 50:50 joint venture acetic acid project in Gujarat.
The 1 MTPA acetic acid plant would come with associated gasification facilities for the production of synthesis gas. Acetic acid finds applications in petrochemicals and paints, apart from other products.
The two companies are in the meantime awaiting the feasibility report that is under way to confirm project details. The project is expected to be commissioned in 2015.
The proposed plant would use BP's latest Cativa XL technology, while the gassification facilities would use petroleum coke feedstock from Indian Oil.
Indian Oil had recently commissioned a 1 MTPA petcoke capacity coker unit at its Gujarat refinery.
According to analysts, the acetic acid would provide an excellent opportunity for enhanced value addition, besides offering a window for import substitution.