|[December 12, 2013]
Technip and BP Extend their Successful Purified Terephthalic Acid Alliance
PARIS --(Business Wire)--
Technip (Paris:TEC) (ISIN:FR0000131708) (ADR:TKPPY) announces the
extension of its long-standing agreement with BP in the purified
terephthalic acid (PTA)(1) domain. Technip will now also
become the exclusive provider of the ISBL (Inside Battery Limit) FEED
(front-end engineering and design) to BP for third-party licensing. This
announcement follows BP's decision last year to make its leading,
proprietary PTA technology available for licensing to third parties (not
affiliated with BP).
This builds upon the agreement signed in 2000, whereby Technip and BP
entered into an exclusive alliance for FEED services for BP's PTA
projects. BP is one of the largest PTA producers in the world and its
PTA technology has significantly lower capital and operating costs,
compared with conventional PTA plants. Besides, it is more energy
efficient, uses less water and produces less solid waste than its
Over the years, the alliance has developed and adapted itself to respond
to the ever more demanding investment cycle. The alliance aims to
deliver advantaged capital productivity, applying the highest standards
of HSSE, operability, innovation and reduced project cycle times. Since
the creation of the alliance, approximately 5 million tons per year of
PTA capacity has been engineered by echnip. The recently designed
Number 3 PTA plant for BP Zhuhai Chemical Company Ltd.(2)
will deliver a step change in environmental performance; compared to
conventional technologies, the new plant will achieve 75% lower water
discharge, 65% lower greenhouse gas emissions and 95% lower solid waste
As an illustration, BP and JBF Petrochemicals (a wholly-owned subsidiary
of JBF Industries Ltd.) previously announced an agreement to license
BP's latest PTA technology. Subsequently, Technip was awarded a major
contract with JBF, for the 1.25 million tons per year PTA unit,
currently under construction in Mangalore, India. The contract covers
the basic engineering, front-end engineering design, detailed
engineering and procurement services for the ISBL and the OSBL (Outside
Battery Limit). The scope of work also includes supply of materials and
construction management services for the ISBL.
Technip's operating center in Rome, Italy, will oversee the extended
Marco Villa, Senior Vice President of Technip's Region B(3),
declared: "The relationship between Technip and BP has been a unique
model for almost 15 years, creating mutual benefit for both parties. We
are proud to become BP's engineering contractor of choice for
third-party PTA licensing, thereby reinforcing our long-term
relationship with BP and our distinct capabilities as one of the world's
leading engineering contractors."
(1) Purified Terephthalic Acid (PTA), in the form of a white
and crystalline powder, is the raw material for the production of
polyester fibers and plastic materials.
(2) BP Zhuhai
Chemical Company Ltd. is a BP joint venture located in Zhuhai, Guangdong
Province, People's Republic of China.
(3) Technip Region
B is composed of Italy, Greece, Eastern Europe/Russia/CIS and South
Technip is a world leader in project management, engineering and
construction for the energy industry.
From the deepest Subsea oil &
gas developments to the largest and most complex Offshore and Onshore
infrastructures, our 38,000 people are constantly offering the best
solutions and most innovative technologies to meet the world's energy
Present in 48 countries, Technip has state-of-the-art
industrial assets on all continents and operates a fleet of specialized
vessels for pipeline installation and subsea construction.
shares are listed on the NYSE Euronext Paris exchange and traded in the
USA on the OTCQX marketplace (OTCQX: TKPPY).
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