‘[This] decision is driven by our dual goals of reducing carbon emissions and managing the energy transition within our business […]’
Ineos has reached an agreement with Sinopec by which it will acquire a 50% stake in a new petrochemical complex being built in Tianjin, China. The Tianjin Nangang Ethylene Project, which is slated to come on-stream by the end of 2023, comprises a 1.2 million tonne/year ethane cracker and 12 downstream derivative plants. The value of the investment was not disclosed.
This latest deal builds on Ineos’ announcement earlier this year that it was taking stakes in a number of Chinese petrochemical projects. The Tianjin Nangang Ethylene Project downstream plants include 300,000 tonne/year of acrylonitrile butadiene styrene (ABS), which will use Ineos’ Terluran process technology, as well as a 500,000 tonne/year high-density polyethylene (HDPE) plant, which Ineos and Sinopec announced earlier this year.
The ABS facility is one of three that Ineos is investing in, which will provide a total production capacity of 1.2 million tonnes/year to meet growing local demand for ABS. The partners have said that the agreement will allow Sinopec to benefit from Ineos’ technical and
The joint venture agreement was signed at a virtual meeting between Sir Jim Ratcliffe, Chairman and CEO of Ineos, and Dr Ma Yongsheng, Chairman of Sinopec. Dr Yongsheng commented: ‘[This] decision is driven by our dual goals of reducing carbon emissions and managing the energy transition within our business, from refining all the way through to petrochemicals. Sinopec will give Ineos a significant local presence and Ineos will contribute its technological and operational expertise.’
Ineos added that China is a key growth market for the company and the agreements reached this year extend its business in the country.