Grangemouth SNP Councillor Angus MacDonald has welcomed the news that Ineos has concluded a framework agreement with Chinese energy giant PetroChina which will see significant investment in the Grangemouth refinery.
The deal, which is an equal partnership between Ineos and PetroChina will result in long-term growth at the plant, enhance long-term profitability and ensure 2,000 jobs are secure.
Welcoming the announcement Cllr MacDonald, who is the SNP Candidate for Falkirk East, said:
“Having attended a meeting with Ineos management last night to discuss the implications of the deal it is clear that this multi-billion pound joint venture will be of enormous long-term benefit to Grangemouth and Scotland, resulting in significant investment and long-term growth and sustainability at the plant.
“This deal, which is a joint venture, not a complete buyout, has been on the cards for over a year and a half, with industry insiders speculating regularly that a deal was imminent. It is estimated by industry insiders that the deal is worth between US$6 and US$7 billion. Significant investment is required to the refinery’s infrastructure and PetroChina’s investment will secure 2,000 jobs and will help to ensure the plant is upgraded.
“While the investment from China may be of concern to some we have to be realistic and accept that we live in a global economy and foreign investment has to be welcomed as we pull ourselves out of the aftermath of Labour’s recession. It is worth stressing that the intake of North Sea oil and the feed pipeline network will still be under the control of BP Exploration in Grangemouth, who will sell oil for processing to the Ineos/PetroChina refinery.”
“This is a vote of confidence in Grangemouth and very welcome news indeed.”
INEOS and China National Petroleum Corporation (CNPC) also announced a new strategic co-operation agreement to share refining and petrochemical technology.
Calum MacLean, INEOS Refining CEO, said: “These agreements will help secure the long term future of jobs and skills at Grangemouth and Lavéra in France, in partnership with one of the world’s largest energy companies.”
Si Bingjun, General Manager of PetroChina International London, said: “The proposal is consistent with our strategy of building a broader business platform in Europe and of becoming a leading international energy company.”