PetroChina and INEOS sign agreement on Scottish refinery

Chinese oil and gas producer PetroChina has formed a trading partnership with leading manufacturer of petrochemicals, INEOS. The deal includes shares in the Grangemouth refinery in Scotland as well as […]

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By Tom Gibson

Chinese oil and gas producer PetroChina has formed a trading partnership with leading manufacturer of petrochemicals, INEOS. The deal includes shares in the Grangemouth refinery in Scotland as well as the Lavéra refinery in France.

The investment will lead to 2,000 jobs created at Grangemouth. Located on the Firth of Forth the refinery has direct access to crude oil and gas from the North Sea.

The Cabinet Secretary for Finance, Employment and Sustainable Growth in the Scottish Government, John Swinney, welcomed the joint venture: “The Grangemouth refinery is a strategic asset for Scotland and this announcement represents good news for Scottish jobs, as well as an increased sharing of technology and expertise. This Joint Venture enhances security of supply for customers and retains the jobs and skills that have been built up over many years at Grangemouth.”

PetroChina has paid US$1.015 billion (£630m) for the shares in the joint venture. The Grangemouth refinery processes around 210,000 barrels of crude oil per day.

Mr Swinney said Scotland’s energy future was bright: “Scotland has unrivalled energy resources and expertise, and the Scottish Government is committed to working with China across this sector.”