UK-based BP and JBF Petrochemicals, a wholly-owned subsidiary of JBF Industries have signed an agreement for licensing BP’s purified terephthalic acid (PTA) technology to be used in the 1.25mt per annum plant in Mangalore, India.

The plant is expected to go on stream at the end of 2014 and would produce PTA, the primary feedstock for polyesters used in packaging and textiles.

BP Global Petrochemicals Business chief executive Nick Elmslie said the PTA technology had significantly lowered capital and operating costs when compared to conventional PTA plants, used less water as it was energy-efficient and produced less solid waste.

"We have decided that the maximum value to BP will come from investing in projects such as our Zhuhai 3 project in Guangdong, China, and through licensing," Elmslie added.

According to JBF, the PTA market has continued to rise at a high rate, and over 80% of the demand at present is in Asia, with around 50% in China alone.