PetroChina Completes Acquisition of Two Refineries in Europe

International Energy Newsletter: Yesterday, PetroChina announced that it had completed the establishment of a trading and oil refining joint venture with the British Ineos Group on July 1. PetroChina has paid US$1.015 billion in cash to acquire shares in the joint venture company.

According to industry insiders, PetroChina has been committed to establishing a European oil and gas operation center and developing high-end European markets in recent years. The establishment of this joint venture company is of great significance to CNPC optimizing resources and market allocation on a global scale.

PetroChina International (London) Co., Ltd. stated that establishing a joint venture with Ineos is in line with CNPC’s strategy of being the world's leading international energy company to build a broader trading platform in Europe.

It is understood that the joint venture company was jointly established by CNPC International (London) Co., Ltd. and Ineos Investment (Jersey) Co., Ltd. and mainly involves the trading and refining businesses of the refineries in Grangermouse, Scotland and Lavale, France. The related business of the joint venture company employs about 1,000 people and has an annual turnover of about US$15 billion.

According to statistics, the Granger Moss refinery in the Forth Bay, Scotland, can directly use crude oil and natural gas from the North Sea. The daily processing volume of crude oil is about 210,000 barrels and refined oil is supplied to Scotland, northern England and northern Ireland. Lavalle refinery is located in the crude oil trade zone of the Mediterranean coast, close to the port of Marseille and crude oil transportation terminal. The daily processing volume of crude oil is about 210,000 barrels, which can supply refined oil through pipelines to France, Switzerland and southern Germany. The two refineries will continue to form an integrated advantage with Innolux's downstream petrochemical business in the future.

The reporter learned that PetroChina's parent company, PetroChina Group and Ingres Group, are currently exploring strategic cooperation to share their own business refining high technology.