PetroChina and INEOS complete transaction to form trading and refining JVs related to refining operations in Scotland and France
PetroChina Company Limited and INEOS Group completed the deal to form trading and refining Joint Ventures between PetroChina International (London) Company Limited, and INEOS Investments (Jersey) Limited on 1 July.
The joint ventures include trading and refining activities at the Grangemouth refinery in Scotland and the Lavera refinery in France. The business employs approximately 1,000 people and has a turnover of $15 billion. PetroChina has paid $1.015 billion cash for the shares in the joint ventures.
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, the partners said.
PetroChina’s ultimate parent company, China National Petroleum Corporation (CNPC), and INEOS are also progressing a strategic co-operation agreement to share refining and petrochemical technology and expertise between their respective businesses.
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 Lavera 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. The refinery supplies fuel by pipelines into France, Switzerland and Southern Germany.
Both sites remain integrated into INEOS’ downstream petrochemical production after the completion.