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Eastman Bp Texas City Production Agreement

“Today`s agreement is another deliberate step in building a BP that can compete and succeed through the energy transition,” said Bernard Looney, Chairman of BP`s Executive Board. Eastman acquired its Texas City site on the U.S. Gulf Coast by acquiring Sterling Chemical, Inc. in August 2011, and took over the production capabilities of foaming plasticizers to produce short-term non-phthalaltic plasticizers such as Eastman 168™ non-phthalate plasticizers. Founded in 1920, Eastman is a global specialty company that produces a wide range of products found in items that people use every day. To materially improve the quality of life, Eastman works with customers to provide innovative products and solutions while maintaining a commitment to safety and sustainability. The company`s growth model, fuelled by innovation, uses world-class technology platforms, deep customer engagement and differentiated application development to strengthen its leading position in attractive end markets such as transportation, construction and consumable development. As a global and diversified integration company, Eastman employs approximately 14,500 people worldwide and serves clients in more than 100 countries. The company has sales of approximately $10 billion in 2018 and is headquartered in Kingsport, Tennessee, USA. For more information, see www.eastman.com. Eastman Chemical CompanyMedia:Tracy Broadwater, 423-224-0498tkbroadwater@eastman.comorInvestors:Greg Riddle, 212-835-1620griddle@eastman.com Eastman`s chemicals, fibers and plastics are used as the main ingredients in the products that people use every day. About 10,000 Eastman employees worldwide combine technical know-how and innovation with practical solutions. The company is committed to finding sustainable business opportunities in the various markets and regions it serves.

Eastman, a global company based in Kingsport, Ten., USA, generated sales of $5.8 billion in 2010. For more information, see www.eastman.com. In 2016, bp Acetyls Americas celebrated the 30th anniversary of a production contract with the Texas City acetic acid site. Our story begins with Monsanto, the original owner and developer of leading acetic acid technology. Subsequently, a group of employees and other investors created Sterling Chemicals to buy the asset, while bp bought the technology. The $5 billion also includes BP`s 37% stake in Atlas Methanol, where Canada`s Methanex is the majority responsible. In March, Methanex announced that it would close some methanol capacity due to low prices. Other assets included in the sale are in Asia and Europe. The operation transfers a production agreement with Eastman Chemical to Texas City for an acetic acid capacity of 600,000 tons. The agreement, which was in effect until 2031, was the result of BP`s purchase of sterling chemicals 10 years ago.

But sources said earlier this month that the two Texas City plants, the DEM and acetic acid units, have been returned to service, albeit with limited capacity. Ineos Olefins and Polymers USA website lists the total annual production of chemicals of 9 billion pounds. It was not until October 2019 that BP considered adding acetic acid production capacity through a new plant project in China.