PetroChina and INEOS announce plans for new trading and refining JV in Europe
PetroChina, through its wholly-owned subsidiary PetroChina International Company Limited, has entered into a framework agreement with INEOS to form a partnership in new trading and refining joint ventures related to the refining operations in Grangemouth (Scotland) and Lavéra (France).
INEOS and China National Petroleum Corporation (CNPC) also announce new strategic co-operation agreement to share refining and petrochemical technology.
The signing of both agreements to be witnessed by Nick Clegg, the British Deputy Prime Minister and Li Ke Qiang, the Chinese Vice Premier. Both say it represents evidence of a strengthening of ties between UK and China.
Calum MacLean, INEOS Refining CEO, says: “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.”
Si Bingjun, General Manager of PetroChina International London, says: “The proposal is consistent with our strategy of building a broader business platform in Europe and of becoming a leading international energy company.”
PetroChina Company Limited (PetroChina) and INEOS Group Holdings plc (INEOS) announce that on 10 January 2011, PetroChina International Company Limited, a wholly-owned subsidiary of PetroChina, has entered into a framework agreement with INEOS European Holdings Limited and INEOS Investments International Limited, each a wholly-owned subsidiary of INEOS.
The Framework Agreement sets out the main principles pursuant to which the parties will work towards forming joint ventures related to trading and refining activities at the Grangemouth refinery in Scotland and the Lavéra refinery in France.
All companies will work towards the formation of the proposed joint ventures by the end of June 2011.
INEOS and PetroChina’s ultimate parent company, China National Petroleum Corporation (“CNPC”), are today also signing a strategic co-operation agreement to share refining and petrochemical technology and expertise between their respective businesses.
The signing of these agreements is to be witnessed by Nick Clegg, the British Deputy Prime Minister, and Li Ke Qiang, the Chinese Vice Premier.
The deals will create a true strategic partnership between the two companies. They will improve the long-term sustainability of the INEOS refineries, enhance security of supply for customers and secure jobs and skills in both the UK and France.
“These deals are the start of a long-term relationship between INEOS and PetroChina, creating a partnership between one of the world’s largest petrochemical companies and one of the world’s largest energy companies.” says Calum MacLean CEO, 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.”
If the deals are completed successfully, they will be of great importance for PetroChina’s global allocation of resources and market portfolio, exploring the high-end European market, as well as establishing PetroChina’s European oil and gas operation centre.
“The framework agreement to work towards forming trading and refining related joint ventures with INEOS is consistent with PetroChina’s strategy of building a broader business platform in Europe and of becoming a leading international energy company,” said Si Bingjun, General Manager of PetroChina International London.
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.
Subsequent to the signing of the framework agreement, which defines the principles under which INEOS and PetroChina International will work towards forming the joint ventures, related to refining and trading, there will be a period of consultation prior to signing a binding agreement, subject to the approval of related regulatory bodies.
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Note to editors:
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.
INEOS Refining is Europe's leading independent crude oil refiner. With two particularly advantaged refineries, it processes more than 420,000 barrels of crude oil per day, to produce in the region of 20 million tonnes of fuels per annum. Our refineries are strategically located at Grangemouth Scotland and Lavéra France and are both fully integrated with co-sited petrochemical assets of the Company. Close proximity to feedstocks and our customers are key elements of our strength. INEOS Refining employs around 1000 people and has a turnover of around $15bn.
PetroChina Company Limited (www.petrochina.com.cn) is the largest oil and gas producer and distributor, in China. It is one of the largest companies in China by revenue, and one of the largest oil companies in the world. PetroChina was established as a joint stock company with limited liabilities by China National Petroleum Corporation on November 5th, 1999. With its headquarters in Beijing, PetroChina is China's biggest oil producer and as of September 2010 is the world’s largest company by market value. Traded in Hong Kong and New York, the mainland enterprise announced its plans to issue stock in Shanghai in November 2007 and following its debut on the Shanghai index its market value has tripled, making PetroChina the first company to reach a trillion dollar market capitalization. The company employs around 540,000 people and has a turnover of around $157billion.