U.K.-based BP and JBF Petrochemicals, on Friday, announced the singing of an agreement for licensing BP’s latest generation purified terephthalic acid (PTA) technology to be used in the 1.25-million tonnes per annum unit at the special economic zone in Mangalore.

The plant would produce PTA, the primary feedstock for polyesters used in textiles and packaging. JBF expects the Mangalore plant to go on stream at the end of 2014, according to an official announcement here.

“This first third-party, non-affiliate, licence recognises the quality of BP’s technology and builds on the excellent relationship between our companies ,” said Nick Elmslie, chief executive of BP’s Global Petrochemicals Business.

He said the PTA technology had significantly lowered capital and operating costs compared with conventional PTA plants, and was more energy-efficient as it used less water and produced less solid waste than its competitors. “ The maximum value to BP will come from investing in projects such as our Zhuhai 3 project in Guangdong, China, and through licensing,” he added.

PTA market has continued to grow at a high rate, and over 80 per cent of the demand is now in Asia, with around 50 per cent in China alone.

B. C. Arya, Chairman, JBF Industries, termed the investment as highly strategic for fulfilling the captive requirements for PTA at the lowest possible cost. “This will make our integrated operations in India and the UAE highly competitive for the long-term and underpin our position as one of the world’s leading polyester producers,” he said.