A Franco-German group led by Ste. Nationale Elf Aquitaine has signed a final agreement to acquire the Leuna and Zeitz refineries and Minol service station network in eastern Germany. The final agreement caps an agreement in principle signed in January with Treuhandanstalt, charged with privatizing assets of the former East German state (OGJ, Jan. 27, p. 28). Elf's partners are Germany's Thyssen Group and SB-Kauf.
Plans call for outlays of more than 6 billion deutschemarks ($4.02 billion) in 1992-96 to modernize and expand the former East German refining/marketing facilities. Elf/Thyssen will seek partners for the venture, and Germany will furnish subsidies.
Elf and Thyssen's respective interests are not disclosed, but Elf is reported to be the majority stakeholder. Most of the outside investment likely will be earmarked for a 4.3 deutsche-mark ($2.88 billion), 200,000 b/d grassroots refinery to replace the existing 100,000 b/d Leuna refinery. A joint venture of Technip, Lurgi Oel Gas Chemie, and Thyssen Rheinstall Technik will conduct studies and construct the refinery and ancillary facilities.
Also on tap are plans for a 650,000 metric ton/year methanol plant at Leuna. In addition, Elf plans to acquire the methanol-based urea formaldehyde resins operations at Leuna and construct a hydrogen peroxide unit in a joint venture with Air Liquide. Agreements for these two projects are to be negotiated by yearend.
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