PetroChina and INEOS European partnership blessed by high ranking government officials
PetroChina International 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 announced new strategic cooperation agreement to share refining and petrochemical technology. All companies will work towards the formation of the proposed joint ventures by the end of June 2011.
Underlying the international importance of PetroChina and INEOS’ collaboration, the official signing ceremony for the agreement(s) will 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,” said Calum MacLean, CEO of 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.”
“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. It processes around 210,000 bpd of crude oil and provides fuel to Scotland, Northern England and Northern Ireland.
The Lavéra refinery also processes 210,000 bpd of crude oil. 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.
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