BP inks MOU with Oman government to build acetic acid plant in Duqm, at investment of over US$1 bln

18-Mar-14

British oil giant BP is negotiating with the Oman government to build a large petrochemical plant in Duqm, with an envisaged investment of over US$1 bln, to manufacture acetic acid using a patented technology, as per Timesofoman.com. Acetic acid is a versatile intermediate chemical, used in a variety of products, such as paints, adhesives and solvents, as well as in the production of purified terephthalic acid, used extensively for manufacturing polyester. BP has signed a memorandum of understanding (MoU) with the Ministry of Oil and Gas to build the project. Jamie Bowden, British Ambassador to the Sultanate, said, "With this potential investment, BP intends to build the world's first acetic acid manufacturing plant using BP's new SaaBre process. This is a breakthrough process in converting synthetic gas to synthetic acid, which will lead to a reduction in manufacturing costs," said Bowden, adding that only BP has this technology. "So, Oman can then become the holder of this technology. It (the project) will be the biggest plant of this type in the Middle East."