BP and China Petroleum & Chemical Corporation have reached an agreement to evaluate the potential for a new acetic acid plant in Nanjing, China.

At its peak, the plant is expected to boast an operating capacity of 600,000 metric tons per year, drawing comparisons with plans from rival firm Celanese's for a new Chinese plant, which boasts a similar output.

Research consultants at Industrial Information Resources say they expect the BP scheme, which will use the methanol carbonisation process, to cost around $400 million.

Like Celanese's operation the plant will draw upon stocks of carbon monoxide and hydrogen in the area, using the materials in its process.

BP says it will apply its Cativa process technology to produce the acetic acid, which relies on the presence of pgm catalysts.

BP uses a proprietary iridium catalyst in order to maximise reactivity and stability, boasting a more efficient use of energy than other materials such as rhodium.

Meanwhile, the Celanese plant has already won approval from the Chinese government, with Foster Wheeler Asia, Limited and Maison Engineers & Constructors helping to deliver the project.

Celanese will use its own process technology, Optimization AO, and is expecting operations to begin in 2006.