Indian Oil Corporation (IOC) and British Petroleum (BP) have inked an memorandum of understanding (MoU) to join hands to explore the possibility for setting up a joint venture to set up a acetic acid plant in Gujarat.

An official statement issued here stated that the 50:50 joint venture will seek to explore the potential for establishing a one million tonne per annum acetic acid plant together with associated gasification facilities for production of synthesis gas.

The proposed acetic acid plant would employ BP's latest Cativa XL technology, while the gasification facilities would utilise petroleum coke feedstock from IOC. A joint feasibility study is currently underway to confirm the exact configuration of the project, which would have a targeted start-up date in 2015, the statement added.