Chemical firm Ineos says it has completed the formation of a 50/50 joint venture with Chinese petchem firm Sinopec for the Tianjin Nangang Ethylene Project, announced in December 2022, which is currently under construction by Sinopec and expected to be on-stream by April 2024.
The petrochemical complex includes a 1.2 million tonnes/year cracker, a new 500 kilotonnes/year high-density polyethylene plant to produce Ineos pipe grade under license and 11 other derivative units, such as the 300 kilotonnes/year ABS (Acrylonitrile Butadiene Styrene) plant .
The 300 ktpa ABS plant will be based on Ineos’s Terluran ABS technology. It is the second of three ABS plants that Ineos has agreed will be built and operated in China in partnership with Sinopec, the first being the 600 ktpa plant currently under construction by Ineos in Ningbo.
The completion of the agreement today marks the continued progression of the significant petrochemical deals announced by the parties in July and December last year, and highlights the close relationship and growing collaboration between Sinopec and Ineos, the firms add.
This is the fourth venture signed in 2022 with Sinopec. Two are petrochemical complexes and two are product joint ventures. Each is a similar scale.
Of the three projects previously announced with Sinopec is Ineos agreement to acquire a 50% stake in Shanghai SECCO Petrochemical Company Limited, a subsidiary of Sinopec. SECCO currently has a production capacity of 4.2 million tonnes of petrochemicals – including ethylene, propylene, polyethylene, polypropylene, styrene, polystyrene, acrylonitrile, butadiene, benzene and toluene. It is a 200-hectare facility, located inside the Shanghai Chemical Industry Park.