PetroChina, China’s largest listed oil and gas producer, will gain a foothold in Europe’s energy markets after agreeing a strategic partnership with Ineos, one of the UK’s largest private businesses.
The deal, which marks a significant overseas investment by PetroChina, came during a state visit to Britain by Li Keqiang, the Chinese vice-premier.
The Chinese company will set up a joint venture with Ineos, the world’s fourth-largest chemicals producer, to refine and trade oil at Scotland’s Grangemouth and France’s Lavera refineries. The deal will give PetroChina access to Europe’s refining markets while giving Ineos, which has been trying to reduce its debt, a capital injection. Under a separate agreement, the two companies will also co-operate to share key refining and petrochemical technology.