Caixin Online
PetroChina to set up Europe refining ventures
By Chen Zhu
Published: Jan 11, 2011 8:47 p.m. ET
Chinese oil major to partner with Scottish, French plants
ChenZhu
BEIJING (Caixin Online) — China's leading oil producer PetroChina reached an agreement with British oil major Ineos Group to set up joint ventures in Europe as part of the Chinese oil company's steps to expand its operations in the international oil-refining market.
According to a statement issued late on Jan. 10, PetroChina International, a wholly-owned subsidiary of PetroChina PTR, -0.55% (601857) , has signed a framework agreement with Ineos' two wholly-owned subsidiaries — Ineos European Holdings and Ineos Investments International — to set up joint ventures in Europe.
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PetroChina said that the ventures will engage in oil trading and refining in partnerships with Grangemouth refining plant in Scotland and Lavéra plant in France.
PetroChina is counting on the partnership to secure an entry-way into the high-end European market. The move will also be an important step for the company to build an oil-and-gas operation center in Europe.
The Grangemouth plant has a daily refining capacity of 210,000 barrels to Scotland, Northern England and Ireland. Lavéra, also with a daily capacity of 210,000 barrels, mainly supplies refined oil to France, Switzerland and Southern Germany.
The final agreement for the partnership is pending detailed negotiation and regulatory approvals. See this report at Caixin Online.
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PetroChina Co. Ltd. ADR U.S.: NYSE: PTR