Ineos has reached a new joint venture agreement with Chinese colossus Sinopec, with the British petrochemical firm acquiring a 50% stake in the Tianjin Nangang ethylene project.
Sinopec is the world's largest oil refining, gas and petrochemical conglomerate, headquartered in Beijing.
The project, currently under construction in Tianjin, China, is expected to produce 1.2mln tons of ethane when it comes online at the end of 2023.
Ethane is a primary feedstock used to make plastic. It is extracted from natural gas.
The new partnership also sees includes the construction of a 300,000 tonnes per annum ABS (Acrylonitrile Butadiene Styrene) plant and a 500,000 tpa HDPE (High-Density Polyethylene) plant which will use Ineos technology. It will be the second of three ABS plants to be built and operated by Ineos and Sinopec in China.
“This latest joint venture with Sinopec significantly expands Ineos’ petrochemical production and business footprint in China,” Ineos chief executive Sir Jim Ratcliffe said in a statement.
“It is a further example of the close relationship and growing collaboration between Sinopec and Ineos.”