Finance Secretary John Swinney has welcomed a deal which will enhance the long term profitability of the Grangemouth oil refinery and secure more than 2,000 Scottish jobs.
Operators Ineos have confirmed details of a Joint Venture with PetroChina which will see investment in its refineries in Scotland and France and the sharing of petrochemicals technology and expertise.
The deal marks an important strategic partnership that will allow Ineos to grow and strengthen its global business whilst securing jobs and expertise at the Grangemouth facility.
Mr Swinney said:
“Scotland has unrivalled energy resources and expertise, and the Scottish Government is committed to working with China across this sector.
“The Grangemouth Refinery is a strategic asset for Scotland and this announcement represents good news for Scotland and Scottish jobs.
“The announcement today of a Joint Venture between China’s premier oil company, PetroChina and INEOS helps to enhance the profitability of refineries here and in France.
“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. It further embeds the successful relationship and excellent links that INEOS has with the local and Scottish communities.
“This agreement provides further evidence of the strengthening of ties between Scotland and China. It coincides with a state visit by Chinese Vice Premier Li Keqiang and the conclusion yesterday of a £6.4 million licensing deal between Scottish and Sino-Scottish companies on green energy development.”
INEOS is the world’s third largest chemicals group and a leading manufacturer of petrochemicals, speciality chemicals and oil products and employs 15,000 people. INEOS Refining is Europe’s leading independent crude oil refiner with annual sales of around $40bn.
It processes more than 410,000 barrels of crude oil per day, to produce in the region of 19 million tonnes of fuels per annum. Refineries are located at Grangemouth and Lavéra France.
The Grangemouth refinery on the Firth of Forth has direct access to crude oil and gas from the North Sea. It processes around 200,000 barrels of crude oil per day (equivalent to 9 million litres of clean fuels per day) and provides fuel to Scotland, Northern England and Northern Ireland.