Motiva Enterprises is buying the Flint Hills Resources chemical plant adjacent to its Port Arthur, Texas, oil refinery, marking its entry into petrochemicals, Kallanish Energy reports. Motiva, the U.S. refining arm of Saudi Aramco, plans to operate the chemical plant while it builds three petrochemical units within its Port Arthur complex as part of an US$18 billion expansion of operations along the U.S. Gulf Coast.
Motiva and Flint Hills confirmed the pending deal after Reuters disclosed it had agreed to buy the operation. Motiva said it expects to deal to close by late 2019. The purchase price was not disclosed. Flint Hills acquired the plant from Huntsman Chemical in 2007 for US$770 million. The Flint Hills plant operates a 1.57 billion-pounds-per-year ethane cracker, a unit producing nylon component cyclohexane, and a network of pipelines and storage caverns.
Motiva has been investing heavily in the Port Arthur area since becoming the sole owner of the 607,000 barrels per day refinery, after the 2017 break-up of a partnership with Royal Dutch Shell Plc that created Motiva.