TotalEnergies and INEOS to realign assets for ethylene production

TotalEnergies and INEOS have signed agreements to realign their respective stakes in their production assets and logistics infrastructure to better reflect the  balance between their production and internal use of ethylene in eastern France. 

For  TotalEnergies, this exchange of interests supports the integration between its petrochemical  sites at Feyzin, near Lyon, and Carling in eastern France, while INEOS strengthens its  operations at the Lavéra site on the Mediterranean coast. 

The companies’ sites that produce and use ethylene in eastern France are connected by a  pipelines and storage network that begins at Lavéra in south-eastern France and passes  through Feyzin to Carling in the north-east. 

However, TotalEnergies does not itself use its share of production from the Lavéra steam  cracker, which is equally owned with INEOS, and sells it mainly to INEOS.  

In order to realign the companies’ production and internal use of ethylene, TotalEnergies will  therefore 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, which TotalEnergies will continue to  operate. 

Within TotalEnergies, the Company is consolidating the key role of the Feyzin  petrochemical platform as the integrated supplier of ethylene to the Carling platform. 

The agreement will have no operational impact on TotalEnergies’ refining and petrochemical  sites. 

“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,” said Jean-Marc Durand, senior vice president, TotalEnergies Refining Base Chemicals Europe. 

The implementation of this project is subject to the prior consultation process of employee  representatives and the approval from the relevant authorities.