INEOS plans refining/technology JVs with PetroChina

Chemical companies, Economic growth, Financial Events, Oil markets

Grangemouth.pngThe Falkirk Herald, INEOS’s local newspaper in Scotland, has had to wait a long time for its ‘scoop’ of June 2009 to be confirmed. It had reported then that INEOS was in talks with PetroChina about the future of the Grangemouth refinery.

As PetroChina noted at the time, “downstream business has a poor margin nowadays and talks can take a really long time“. But now the two companies have confirmed they plan to establish a “partnership in new trading and refining joint ventures related to the refining operations in Grangemouth (Scotland) and Lavéra (France)”.

They expect to establish the trading and refining JVs by the end of June. In addition, they have announced a strategic co-operation agreement to share refining and petrochemical technology. The aim, according to the companies is to “create a true strategic partnership“, seemingly focused in 3 initial areas:

• Refining, based on the Grangemouth and Lavéra refineries
• Oil trading, presumably replacing the current arrangement with Morgan Stanley (whose investment arm are advising INEOS on the PetroChina deal).
• Acrylonitrile, where INEOS’s technology will support China’s plans for domestic investment

INEOS will receive a cash injection when the JVs are formed, which it says will be used to pay down some of its current €7bn debt.

The JVs will also enable it to make progress with what INEOS director Tom Crotty terms its “two big strategic objectives” – growing its geographic footprint outside the West, and leveraging its technology in China.


Unemployment hits US auto sales in 2010


As the chart shows, December’s US auto sales (orange line) were the highes...

Learn more

The $600bn man


In October 2008, the blog featured the US Treasury official responsible for runn...

Learn more
More posts
OPEC+ faces difficult decisions as Covid returns, recession risks rise, and oil prices crash

OPEC+ oil producers saw prices tumble $10/bbl (13%) on Friday as the world woke up to the fact that ...

‘Watch out below!’ as supply chain chaos comes to an end

“What goes up, comes down” is usually a good motto when prices start to reach for the sk...

Industry now needs to step up, if Net Zero is to be achieved

Net Zero is clearly the key issue of our time. With COP26 about to start, 3 key elements need to com...

The Fed’s stock market bubble is at risk as China bursts its real estate bubble

The US stock market bubble just keeps rising. And every investor “knows” that the US Fed...

EU patience starts to run out as UK threatens to break the N Ireland Protocol

Unsurprisingly, it turns out that Brexit still isn’t “oven-ready”, despite the UK ...

An end to the China bubble would risk a Minsky moment

My letter in today’s Financial Times warning of the risk to Western financial markets from the bur...

Xi aims to “bring order out of chaos” by bursting China’s property bubble

China is at the start of its biggest economic shake-up since 1978, when Deng Xiaoping launched his p...

The end of China’s real estate bubble will impact global supply chains, exports and growth

“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly....


Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more


Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more