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Korea-based petrochemical company SK Global Chemical Company has signed a deal with Sinopec Sichuan Vinylon Works (Sinopec SVW), a Chinese state-owned energy and petrochemical firm, and British Petroleum to build a CNY7 billion (USD1.11 billion) integrated petrochemical plant in Chongqing, China.

The consortium will build an integrated 1,4-butanediol (BDO) and acetic acid project at Chongqing Changshou Economic and Technological Development Zone, in the northeastern part of Chongqing city by the Yangtze River. The scope of the work involves construction of a 600,000 tons per year acetic acid plant, a 200,000 tons per annum 1,4-Butanediol (BDO) plant as well as associated facilities.

The plant is anticipated to consume 440 million cubic metres of natural gas per year. Construction of the plant has been divided in to multiple phases. The plant is slated for completion in 2015. The companies have completed feasibility study on the project and are awaiting approval from the Chinese Government.
 
The acetic acid plant will be built by Yaraco, a joint venture of BP, SVW and Chongqing Energy Investment Group (CEIG), while the new BDO plant will be jointly built by SK and SVW.