INEOS links with PetroChina, CNPC
11 Jan 2011
Grangemouth, UK – INEOS has agreed to partner with PetroChina in new trading and refining joint ventures related to the UK group’s refining operations in Grangemouth, Scotland and Lavéra, France.
In a related move, INEOS has also signed a deal to share refining and petrochemical technology with PetroChina’s parent group China National Petroleum Corp. (CNPC).
“These agreements will help secure the long term future of jobs and skills at Grangemouth and Lavéra, in partnership with one of the world’s largest energy companies,” Calum MacLean, CEO of INEOS Refining.
“They present a clear opportunity for INEOS to progress its aim of forming strategic partnerships to help grow and strengthen its business. The agreements will provide further investment in our refineries, securing their competitiveness in European markets, and will secure jobs and skills in the UK and France,” he added.
For PetroChina, Si Bingjun, general manager of PetroChina International London, said: “The proposal is consistent with our strategy of building a broader business platform in Europe and of becoming a leading international energy company.”
The joint ventures related to trading and refining activities at the Grangemouth refinery in Scotland and the Lavéra refinery in France, are expected to be established by the end of June 2011 – subject to consultations and regulatory approvals.
The Grangemouth refinery is located on the Firth of Forth with direct access to crude oil and gas from the North Sea. The Grangemouth refinery processes around 210,000 barrels of crude oil per day and provides fuel to Scotland, northern England and Northern Ireland.
The Lavéra refinery processes 210,000 barrels of crude oil per day. It is located on the coast of the Mediterranean crude oil trading basin, next to the port of Marseille and adjacent to a crude oil terminal. The refinery supplies fuel by pipelines into France, Switzerland and southern Germany.
Both sites are integrated into INEOS’s downstream petrochemical production and remain strategic to its long-term business.
Bejing-based PetroChina is the largest oil and gas producer and distributor in China, and one of the largest oil companies in the world. Established by CNPC back in 1999, the company now employs around 540,000 people and has a turnover of around $157billion.
INEOS is the world’s third largest chemicals group and a leading manufacturer of petrochemicals, speciality chemicals and oil products.
As of the end of 2010 it operates 15 businesses and with a production network spanning 61 manufacturing facilities in 13 countries, the group produces more than 40 million tonnes of petrochemicals and 20 million tonnes per annum of crude oil refined products (fuels) each year. INEOS employs 15,000 people and annual sales of around $40bn.
