INEOS seals deal to acquire TotalEnergies’ stake in key petrochemical JVs

INEOS is set to acquire TotalEnergies’ 50% share in a series of petrochemical joint ventures (JVs), as part of a deal signed between the two parties.

The purchase encompasses Naphtachimie, the operator of one of Europe’s largest steam crackers with an annual capacity of 720,000 tonnes of ethylene, Appryl, a 300,000 tonnes per annum polypropylene business, and Gexaro, an aromatics business with an annual capacity of 270,000 tonnes.

This strategic move will ensure the complete integration of the aforementioned petrochemical businesses, assets, and infrastructure into INEOS Olefins & Polymers South at Lavera in Southern France. Gexaro, located on the Lavera refinery site, will still be managed by Petroineos, even after the acquisition.

Further to these businesses, the agreement also covers the acquisition of the southern sections of TotalEnergies’ ethylene pipeline network that runs from Lavéra to the Lyon region, while both companies will retain equal ownership of the central and northern sections, running from Lyon to the Lorraine region.

The Lavera petrochemicals complex and refinery, known as the largest in South France, will be included in the acquisition.

Major petrochemical acquisition: INEOS to fully integrate TotalEnergies’ stake in joint ventures. Photo courtesy of INEOS.

Xavi Cros — INEOS Olefins & Polymers South CEO said: ​”This is a major step forward for the INEOS French and South European businesses. The acquisition will allow us to fully integrate these assets and enhance the competitiveness of our offer. At the same time our goal is to continue to invest in them, including CO2 reduction to meet our Net Zero 2050 commitment.”

TotalEnergies does not use its share of production from the Lavéra steam cracker, which is equally (50/50) owned with INEOS, and primarily sells it to INEOS. As such, TotalEnergies plans to sell its stake in the Lavéra assets to INEOS, in addition to part of its interests in the Eastern France ethylene pipeline and storage network.

Jean-Marc Durand — TotalEnergies Refining Base Chemicals Europe Senior Vice President said: “This operation allows us to strengthen the links between our Feyzin and Carling petrochemical sites, with Feyzin becoming Carling’s integrated ethylene supplier, in line with our strategy to focus on our integrated platforms.”

The completion of the deal remains subject to consultation and regulatory approval and is anticipated around the end of 2023.