INEOS to acquire 50% of new SINOPEC cracker, 12 derivative plants in Tianjin
LONDON (ICIS)–INEOS has agreed to acquire a 50% share in the Tianjin Nangang Ethylene Project, currently under construction by SINOPEC, the European petrochemicals major said on Wednesday.
The project is focused on a 1.2m tonnes/year ethane cracker and 12 derivative units, including a 300,000 tonne/year acrylonitrile butadiene styrene (ABS) plant and a 500,000 tonne/year high density polyethylene (HDPE) plant.
Both plants will use INEOS’ technology, it said.
“This latest joint venture [JV] with SINOPEC significantly expands INEOS’ petrochemical production and business footprint in China. It is a further example of the close relationship and growing collaboration between SINOPEC and INEOS,” CEO of INEOS Jim Ratcliffe said.
INEOS signed three deals with SINOPEC in July, including the ABS and HDPE joint venture plants and further expansions, and a 50% stake in the Shanghai SECCO JV which is a cracker and a number of downstream units with a combined capacity of 4.2m tonnes/year, according to INEOS.
The agreements had a combined value of $7bn and a combined capacity of 7m tonnes of capacity.
The Shanghai SECCO agreement was approved by China in late November.
INEOS has signed four agreements in total with SINOPEC in 2022, encompassing the two petrochemical complexes and the two product joint ventures.
“China is a key growth region for INEOS and the agreements significantly extend its petrochemicals business with a focus on products where it has some of the leading proprietary technologies,” INEOS said.
The long-standing partnership agreement between SINOPEC and INEO is taken to a new level, SINOPEC chairman Ma Yongsheng said.
“The decision is driven by our dual goals of reducing carbon emissions and managing the energy transition within our businesses, from refining all the way through petrochemicals,” he said.
“SINOPEC will give INEOS a significant local presence and INEOS will contribute its technological and operational expertise, which will create a win-win for the cooperative development of both companies.”
Front page picture: The Tianjin Nangang
Ethylene Project under
Picture source: INEOS
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