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Saudi Aramco's Motiva to buy US chemicals plant from Koch firm

Motiva, the US-based refining arm of Aramco, has inked a purchase agreement with Flint Hills Resources Port Arthur

Saudi Aramco's Motiva plans to expand in the US [representational].
Pixabay
Saudi Aramco's Motiva plans to expand in the US [representational].

Saudi Arabian oil and gas giant Saudi Aramco’s US-based refining arm Motiva Enterprises has signed an agreement with an affiliate of Kansas-based Flint Hills Resources – a subsidiary of Koch Industries chaired by American billionaire Charles G Koch – to acquire full ownership interest in Flint Hills Resources Port Arthur. 

In a statement, Motiva — which owns and operates North America’s largest refinery with a capacity of more than 630,000 barrels of crude oil per day in Port Arthur — said that the potential acquisition would be closed, subject to satisfaction of terms and conditions, in the fourth quarter of 2019.

Motiva added that the parties would not be disclosing the terms of the transaction.

According to a Reuters report, as part of the deal, Motiva will acquire a chemical plant owned by Flint Hills Resources that produces ethylene, cyclohexane, and polymer grade propylene, located near its oil refinery in Port Arthur, Texas.

Flint Hills Resources acquired the chemical plant in November 2007 from Huntsman Corp for $770m (SAR2.9bn), according to a statement released by the company at the time.

Motiva’s acquisition plan comes as it looks to construct three petrochemical units within its Port Arthur complex as part of an $18bn (SAR67.5bn) deal to expand its operations in along the US Gulf Coast, Reuters added.

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Sep 15, 2019