INEOS and SINOPEC sign three significant petrochemical deals
INEOS and SINOPEC have signed three back-to-back deals worth a combined value of $7 billion.
These landmark agreements are expected to generate a combined turnover of around $10bn from 7 million tonnes of capacity. INEOS said: “The three agreements will significantly reshape INEOS’ petrochemicals production and technology in China.”
Firstly, INEOS has agreed to acquire a 50 percent stake in Shanghai SECCO Petrochemical Company Limited (SECCO), a subsidiary of China Petroleum & Chemical Corporation (SINOPEC).
SECCO currently has a production capacity of 4.2 million tonnes of petrochemicals – including ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene, acrylonitrile, butadiene, benzene and toluene. It is a 200-hectare facility, located inside the Shanghai Chemical Industry Park.
Secondly, INEOS has agreed to establish a new 50:50 joint venture with SINOPEC with the intent to build production capacity of up to 1.2 million tonnes of ABS, to meet rapidly growing demand in China. The 600ktpa ABS plant in Ningbo, which is currently under construction by INEOS Styrolution and is planned to be operational by the end of 2023, will become part of the joint venture. INEOS and SINOPEC also plan to work together on two additional 300ktpa ABS plants, which will also be built by the joint venture based on INEOS’ world leading Terluran® ABS technology. One of these 300kt plants will be located in Tianjin, the location of the third unit is yet to be decided.