Petrochemical maker INEOS has signed an agreement to acquire Naphtachimie, Appryl and Gexaro, which are 50-50 joint ventures between the company and TotalEnergies, they said in a joint press release.
The planned acquisitions will fully integrate the petrochemical businesses, assets and infrastructure of Naphthachimie, Gexaro and Appryl into INEOS Olefins & Polymers South in Lavera, southern France.
Lavera’s petrochemical complex is the largest in southern France, the announcement notes. Gexaro is located at the Lavera refinery site and will continue to be operated by Petroineos, INEOS said. Naphtachimie operates one of Europe’s largest steam crackers with an annual capacity of 720,000 tonnes of ethylene, while Gexaro is an aromatics business with an annual capacity of 270,000 tonnes. Appryl is a polypropylene business with an annual capacity of 300,000 tonnes, according to the statement.
INEOS will also acquire 3TC, a 50-50 joint venture between TotalEnergies and Petroineos. Stores naphtha raw materials for the Naphtachimie steam cracker.
As part of the deal, INEOS will also acquire the southern sections of TotalEnergies’ ethylene pipeline network that runs from Lavera to the Lyon region. The central and northern sections, from the Lyon region to the Lorraine region, will be occupied equally by both companies, according to the press release.
Completion of the deal is subject to consultation and regulatory approval and is expected by the end of 2023, INEOS said. The price of the deal was not disclosed.
“These businesses and pipelines are valuable strategic assets and will further enhance INEOS’ portfolio,” said Xavi Cros, CEO of INEOS Olefins & Polymers South. “This is a big step forward for the INEOS companies in France and Southern Europe. The acquisition will allow us to fully integrate these assets and enhance the competitiveness of our offer. At the same time, we aim to continue investing in them, including reducing CO2 to meet our Net Zero 2050 commitment.”
LNG carrier agreements
In a separate press release, INEOS Energy Trading said it signed agreements with Mitsui OSK Lines (MOL) for two new liquefied natural gas (LNG) carriers, which will be used to import LNG to Germany from the US.
The two vessels, which are being built at the Okpo shipyard in South Korea, will have a capacity of 6.1 million cubic feet (174,000 cubic meters) and will be equipped with the latest MAN Energy Solutions engines. This is INEOS’ first foray into the LNG carrier market and will add to its fleet of 12 dedicated ethane carriers, the company said.
INEOS said it will “capitalize on its experience as the largest transporter of ethane gas from the United States to Europe and Asia to develop an LNG ‘pipeline’ to Europe to meet its own demand as well as that of selected third parties.”
“It was extremely important to select modern and efficient vessels with environmental considerations built into the design,” said David Bucknall, CEO of INEOS Energy Trading. “We agreed on an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slippage. We will continue to work with MOL to identify further opportunities to reduce emissions as both companies work towards a net zero future.”
The agreements follow INEOS’ December 2022 purchase and sale agreement for 1.4 million metric tons of LNG per year from the Port Arthur LNG facility, which is under development in Texas, and its July 2022 contract for long-term regasification capacity at the proposed German LNG terminal in Brunsbuettel, Germany.
In February, Ineos Energy announced its entry into US oil and gas production for the first time with the acquisition of a portion of Chesapeake Energy’s oil and gas assets in the Eagle Ford shale for $1.4 billion. The acquisition includes 2,300 wells producing 36,000 net barrels of oil equivalent per day, as well as production and exploration leases on 172,000 net acres. Ineos said the addition of Chesapeake’s assets and operations in South Texas is part of its strategy to build an integrated global portfolio that adapts to the energy transition and delivers high-quality energy solutions to customers.
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