The cooperation in the petrochemical sector between Ineos and Sinopec has been crowned by the completion of two deals.
To remind, in July last year, Ineos and Sinopec signed three back-to-back deals worth a combined value of $7 billion. In December, Ineos and Sinopec added the fourth joint venture agreement that will see Ineos acquire a 50 percent share in the existing Tianjin Nangang Ethylene project from Sinopec.
The two deals completed are part of the July batch when the two agreed for Ineos to acquire 50 percent of Shanghai SECCO Petrochemical company. Ineos and Sinopec have also established a 50:50 joint venture for ABS (Acrylonitrile Butadiene Styrene), based on Ineos’ world-leading proprietary ABS Technology.
The third agreement from the July package and the agreement signed in December are expected to be completed in 2023. The remaining July deal will see Ineos and Sinopec establish a third 50:50 joint venture to build a new 500ktpa HDPE (High-Density Polyethylene) plant in Tianjin. The Tianjin Nangang Ethylene project, which is effectively the fourth deal, is currently under construction by Sinopec and is expected to be on-stream by the end of 2023.
“These agreements significantly reshape INEOS’ petrochemical production and technology in China. We are pleased to make these major investments with Sinopec in areas that provide the best growth opportunities for both companies. Both parties recognize the potential for closer collaboration across a number of other areas as we look ahead,” Jim Ratcliffe, Chairman and CEO of Ineos said.
“Sinopec and Ineos have enjoyed many years of partnership and these two significant deals are a testament to the cooperation in the petrochemical field between us, which is now taken to a new level. Driven by the dual goals of managing carbon emissions and the energy transition, the two parties will play to their respective advantages in market location, resources, and technology, to create a win-win development for both companies to expand further possibilities in the development of Chinese petrochemical market,” added Ma Yongsheng, Chairman of Sinopec.
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