Angus MacDonald welcomes China stock market announcement on Ineos
Monday, 04 July 2011 05:05
Angus MacDonald, MSP for Falkirk East has welcomed an announcement made at the Chinese Stock Market today that PetroChina Company Limited (PetroChina) and INEOS Group (INEOS) have completed the deal to form trading and refining Joint Ventures between PetroChina International (London) Company Limited, and INEOS Investments (Jersey) Limited on July 1st.
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 has paid $1.015 billion cash for the shares in the joint ventures.
Speaking on Sunday after the announcement Falkirk East SNP MSP Angus MacDonald, who is also a Grangemouth Councillor said:
"This is a real opportunity for INEOS to progress strategic partnerhips to help and grow its global business, securing their competitiveness in global markets, whilst also safeguarding local jobs in Grangemouth.
"This development builds upon and is a key part of the Scottish Government's ongoing trade relationships with China.
“It is clear that this multi-billion pound joint venture will be of enormous long-term benefit to Grangemouth and Scotland, resulting in significant investment and long-term growth and sustainability at the plant.
"Significant investment is required to the refinery's infrastructure and PetroChina's investment will secure 2,000 direct and indirect jobs and will help to ensure the plant is upgraded.
“While the investment from China may be of concern to some we have to be realistic and accept that we live in a global economy and foreign investment has to be welcomed as we pull ourselves out of Labour's recession. It is worth stressing that the intake of North Sea oil and the pipeline network will still be under the control of BP Exploration in Grangemouth, who will sell oil for processing to the Ineos/PetroChina refinery.”
Li Keqiang, the Chinese Vice Premier, and Nick Clegg, the British Deputy Prime Minister, witnessed the signing of the framework agreement to form the Joint Ventures, in January. The completion of the transaction, announced today follows a successful consultation process with INEOS employees, the approval of INEOS lenders and relevant Government and regulatory bodies.
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 centre. "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. "We are delighted to have PetroChina as our long-term strategic partner in both the Grangemouth and Lavéra refineries", said Calum MacLean CEO, 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 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 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. The refinery supplies fuel by pipelines into France, Switzerland and Southern Germany.
Both sites remain integrated into INEOS' downstream petrochemical production after the completion.
SOURCE PetroChina Company Limited (PetroChina) and INEOS Group (INEOS)