Tuesday, 23 February 2010
Grangemouth Refinery - One to Watch
Ineos, which owns the refinery at Grangemouth where much of the petrol used in Scotland is produced, has refused to comment on talk that a deal has been done which will result in a Chinese oil and gas giant acquiring it.
A source said PetroChina had struck a deal to buy the refinery which will give the state-owned firm control over the production of fuels like petrol and diesel.
Ineos, the debt-ridden chemical firm, declined to give any further update on the status of long-running talks about Grangemouth and therefore did not appear to rule out the prospect of a deal with PetroChina, a deal that could be politically explosive.
Selling the refinery on the Forth might allow Ineos to make a big impact on the huge debts it amassed to fund acquisitions. It bought the Innovene petrochemicals operation that owned Grangemouth from BP for £5billion in 2005.
Western oil and gas majors are switching refinery investment to Asia, where there are better growth prospects. By contrast oil and gas forms in Asia are eyeing opportunities in the West.
Certainly one to watch for future developments.
Thanks to scunnert