PetroChina, INEOS finalize Europe refining JV
PetroChina and INEOS have completed a deal to form trading and refining joint ventures effective July 1.
The joint ventures include trading and refining activities at the Grangemouth refinery in Scotland and the Lavéra refinery in France. The business employs approximately 1,000 people and has a turnover of $15bn.
PetroChina paid just over $1 billion in cash for shares in the joint ventures, it said.
The completion of the joint ventures are of great importance for PetroChina’s global allocation of resources and market portfolio, as it explores the high-end European market, and begins to establish PetroChina’s European oil and gas operation center, the company said.
“The joint ventures with INEOS are consistent with PetroChina’s strategy to build its broader business platform in Europe as a leading international energy company,” said Si Bingjun, general manager of PetroChina International-London.
The formation of the joint ventures creates a strategic partnership between both companies that strengthens the long-term sustainability of both refineries, enhances security of supply for customers and secures jobs and skills in both the UK and France, they said.
“We are delighted to have PetroChina as our long-term strategic partner in both the Grangemouth and Lavéra refineries”, said Calum MacLean CEO of INEOS Refining.
“The formation of the joint ventures provides further investment in our refineries, and enhances their competitiveness in European markets.”
PetroChina’s ultimate parent company, China National Petroleum Corp. (CNPC), and INEOS are also progressing toward a strategic co-operation agreement to share refining and petrochemical technology and expertise between their respective businesses, they said.
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 bpd of crude and provides fuel to Scotland, Northern England and Northern Ireland.
The Lavéra refinery also processes 210,000 bpd of crude. It is located on the coast of the Mediterranean crude oil trading basin, next to the port of Marseille. The refinery supplies fuel by pipelines into France, Switzerland and Southern Germany.
Both sites remain integrated into INEOS' downstream petrochemical production after the completion, the company said.
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