PARIS, Apr. 26 -- Ineos Group Holdings Inc., which bought BP PLC petrochemical subsidiary Innovene, is determined to expand in refining, an executive said.
Ineos took over the Grangemouth, Scotland, and Lavera, France, refining and petrochemical complexes late last year (OGJ Online, Oct. 7, 2005.)
In an interview published recently by a Lavera internal publication, Ineos Refining Chief Executive Officer Bill Reid said a tight oil market and good refining margins have made the purchase of refining assets attractive.
Ineos is contemplating refining acquisitions and Reid said 134 European refineries are "in the process of consolidation."
The Grangemouth and Lavera refineries have a combined refining capacity of 425,000 b/d and chemical feedstock output of 2.2 million tonnes/year.
Refining generates more than 25% of Ineos's profits, Reid said. The Grangemouth and Lavera teams have identified growth opportunities.
Ineos is progressing with a €74 million project installing desulfurization units at Lavera to conform with European fuel sulfur-content specifications.
"The sulfur rate in diesel oil will be reduced from 50 ppm to 10 ppm 2 years ahead of the legislation deadline," Reid said.
A new Lavera jet fuels process unit is due on stream in July. In addition, a new hydrogen unit is slated to come on stream in July. Ineos also is modernizing petrochemical units, but no capacity increases are planned.