PetroChina agrees framework refinery JV deal with INEOS

10 January 2011 13:50  [Source: ICIS news]

LONDON (ICIS)--PetroChina has entered into a framework agreement with INEOS to form joint ventures for trading and refining activities at Grangemouth in Scotland and Lavera, France, it said on Monday.

Core to INEOS is also an agreement signed on Monday with PetroChina’s ultimate parent company, China National Petroleum Corporation (CNPC) to share refining and petrochemical technology and expertise. The agreement gives INEOS the opportunity to lever its technology and expertise into the China market.

PetroChina and INEOS would work towards the formation of the proposed joint ventures by the end of June 2011, PetroChina said. No financial details were immediately available but an INEOS spokesman clarified that the agreement covered all INEOS refining and trading activities associated with the two refineries.

INEOS refining is Europe’s largest independent oil refiner. The two refineries can process 410,000 bbl/day of crude to produce about 20m tonnes of fuels per annum. INEOS Refining has a turnover of about $15bn (€12bn).

“The deals are consistent with PetroChina’s strategy of building a broader business platform in Europe and of becoming a leading international energy company, and also present a clear opportunity for INEOS to progress its aim of growing and strengthening its business,” PetroChina said.

The signing of the agreements was to be witnessed on Monday by Chinese Vice Premier Li Ke Qiang and Britain’s Deputy Prime Minister Nick Clegg.

($1 = €0.78)

Graeme Paterson contributed to this article

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By: Nigel Davis
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