UpdatePetroChina/CNPC agree refinery, petchem deals with INEOS

10 January 2011 14:44  [Source: ICIS news]

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By Nigel Davis

LONDON (ICIS)--The framework agreements signed by INEOS, PetroChina and China National Petroleuem Corporation (CNPC) on Monday herald partnerships in refining, trading and petrochemicals, the companies said.

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.

Core to INEOS is also an agreement with CNPC, PetroChina’s ultimate parent company, to share refining and petrochemical technology and expertise. The deal gives INEOS the opportunity to lever its technology and expertise into the China market.

China’s Vice Premier Li Ke Qiang and Britain’s Deputy Prime Minister Nick Clegg were to witness the signing of the agreements, according to PetroChina.

PetroChina and INEOS would work towards the formation of the proposed joint ventures by the end of June 2011, it added.

No financial details were immediately available but an INEOS spokesman clarified that the agreement with PetroChina covered all INEOS refining and trading activities associated with the two refineries.

“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 in a statement.

It added that it would work with INEOS towards forming the refining and trading joint ventures prior to signing a binding agreement, subject to the approval of the relevant regulatory bodies.

“The proposal is consistent with our strategy of building a broader business platform in Europe and of becoming a leading international energy company,” said General Manager of PetroChina International London, Si Bingjun.

INEOS Refining CEO Calum MacLean said.“These agreements will help secure the long term future of jobs and skills at Grangemouth and Lavera, in partnership with one of the world’s largest energy companies.”

INEOS refining is Europe’s largest independent oil refiner. The Grangemouth and Lavera refineries, formerly owned by BP, 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).

($1 = €0.78)

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By: Nigel Davis
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