Ineos and Sinopec Agree Fourth Venture in China
“This latest joint venture with Sinopec significantly expands Ineos’ petrochemical production and business footprint in China. It is a further example of the close relationship and growing collaboration between Sinopec and Ineos,” said Ineos chairman and CEO Jim Ratcliffe.
Ma Yongsheng, chairman of Sinopec added that the decision to enter into another joint venture is driven by the companies’ dual goals of reducing carbon emissions and managing the energy transition within their businesses, from refining all the way through petrochemicals. “Sinopec will give Ineos a significant local presence and Ineos will contribute its technological and operational expertise, which will create a win-win for the cooperative development of both companies,” he said.
The project at Tianjin comprises a 1.2 million t/y ethane cracker and derivative plants. These include units for 300,000 t/y ABS and 500,000 t/y HDPE, which the partners had previously announced in July as two separate joint ventures.
The Terluran ABS plant is the second of three such plants that Ineos has agreed to build and operate in China in partnership with Sinopec. A first plant with capacity of 600,00 t/y is currently under construction in Ningbo and due on stream by end 2023. The location for a third ABS plant has still to be decided.
A third agreement signed this year saw Ineos taking a 50% share in Shanghai Secco Petrochemical, which produces 4.2 million t/y of petrochemicals on a site outside the Shanghai Chemical Industry Park.
China is a key growth region for Ineos, and the company said the agreements significantly extend its petrochemicals business with a focus on products where it has some of the leading proprietary technologies.
The transactions are all subject to regulatory approvals and other conditions and will be financed through a combination of internal cash resources and external financing.
Author: Elaine Burridge, Freelance Journalist