Sinopec And Ineos Completed The Delivery Of Chemical Cooperation Projects

On December 28, Sinopec and Ineos Group officially completed the delivery of two chemical cooperation projects. According to the previously announced cooperation plan, the two parties will establish joint ventures at a 50:50 share ratio to operate Shanghai Secco Petrochemical Co., Ltd. and Sinopec Ineos Benzene Ring (Ningbo) Co., Ltd. to jointly explore the domestic chemical market.

Ma Yongsheng, chairman of Sinopec, said that Sinopec and Ineos have a foundation of cooperation for many years. With the implementation of two major projects, the two sides will certainly unite in the chemical industry to promote the cooperation between the two sides to a new height. It is believed that under the "double carbon" goal and the requirements of the era of energy and chemical transformation, both sides can give full play to their respective advantages in market location, resources and technology, achieve complementary advantages and win-win development, and jointly expand more possibilities for China's chemical industry.

Jim Ratcliffe, the founder and chairman of Ineos, said that we are very happy to cooperate with Sinopec. The two companies have good prospects for development. Ineos has opened a new chapter in its business and technology layout in China. In the future, we can carry out closer cooperation in other fields.

Shanghai Secco Petrochemical Co., Ltd. was established in November 2001. Its predecessor was a Sino foreign joint venture limited liability company invested by Sinopec, Shanghai Petrochemical and BP East China Investment Co., Ltd., with a total investment of more than 3 billion dollars.

Sinopec Ineos Benling (Ningbo) Co., Ltd., formerly a wholly-owned subsidiary of Ineos, was established in August 2019. Two sets of ABS units with capacity of 300000 tons/year are under construction and are planned to be put into production by the end of 2023.

Sinopec and Ineos

On July 28, Sinopec and Ineos signed a series of cooperation agreements with a total value of about US $7 billion. The three landmark agreements are expected to achieve a total annual production capacity of 7 million tons and generate sales of about US $10 billion annually.

1, Ineos will acquire 50% equity of Shanghai Secco Petrochemical Co., Ltd. ("Shanghai Secco"), a subsidiary of SINOPEC.

2, Sinopec and Ineos jointly set up a new joint venture based on 50%: 50% equity ratio, with the goal of achieving 1.2 million tons/year ABS capacity to meet China's rapidly growing demand.

3, Sinopec and Ineos will jointly establish a joint venture based on 50%: 50% equity ratio to build a 500000 t/a high density polyethylene (HDPE) project in Tianjin. In addition, Sinopec and Ineos will build at least two more 500000 t/a high-density polyethylene (HDPE) projects in the future, authorizing the production of Ineos pipe products.

4, On December 7, 2022, Ineos signed a new cooperation agreement with Sinopec. Ineos will acquire 50% of the equity of Sinopec Tianjin Nangang Ethylene Project. The project currently has 1.2 million tons/year ethylene cracking unit under construction and downstream high-end new material derivative product unit, which is expected to be put into production by the end of 2023.