Motiva Buys Flint Hills Texas Cracker
Saudi Aramco’s US subsidiary Motiva Enterprises has agreed to buy Flint Hills Resources' cracker and related chemical assets at Port Arthur, Texas, USA. Financial terms were not disclosed.
The cracker has a capacity of around 700,000 t/y ethylene while the chemical assets comprise a cyclohexane unit and associated ethylene and natural gas liquid (NGL) pipelines and storage. The deal is expected to close in the fourth quarter of 2019.
“The Port Arthur facility is well-positioned for continued success, especially as part of the Motiva organization, which has neighboring assets with strategic synergies and integration opportunities that will help the business remain competitive,” said Jeff Ramsey, president and CEO of Flint Hills Resources.
Motiva is also planning to build a cracker, ethylene derivatives and aromatics plants along the Gulf Coast, with locations including Texas and Louisiana under review. The company signed agreements with TechnipFMC and Honeywell UOP in April 2018 to study the projects using their respective mixed-feed ethylene and aromatics extraction technologies. A final decision to build the plants is expected to be made this year.
Aramco, through its wholly owned subsidiaries, took ownership of Motiva’s refinery in Port Arthur following the completion of an asset separation with Shell. The two ran the refinery as a 50:50 joint venture from Jan. 1 2002 until May 1 2017.
