In 2017, Aramco bought out Shell’s share of the then-joint venture operating the s 600,000 bbl/d Motiva refinery at Port Arthur, the largest in the US. A year later, the Saudi oil giant announced plans to invest $18 billion over the coming five years to increase refining capacity and expand into chemicals in the US and at home.

The plans, which reflected Saudi Arabia’s diversification drive under Crown Prince Mohammed bin Salman, foresaw creating the biggest combined refining and petrochemical operation in the US.

During an official visit to the US by the crown prince in April 2018, Motiva said it had signed two Memoranda of Understanding (MoUs) worth $8-10 billion, which signaled its intention to expand on the Texas Gulf. The group said at the time that final investment decisions would be made in 2019 and would depend on strong economics, competitive incentives and regulatory support.

One of the MoUs called for evaluating the use of TechnipFMC’s mixed-feed ethylene technologies, while the second called for studying the feasibility of using Honeywell UOP’s aromatics extraction and production technologies for benzene and PX.

Recently, rumors have suggested that all projects could be put on hold as Aramco has come under financial pressure from lower oil prices and a hefty $75 billion annual dividend burden from its 2019 initial public offering, all amid a pandemic-related oil price slump.

The state-owned Saudi group now plans to steer the bulk of its $35 billion capital expenditure budget toward boosting oil and natural gas production, Wall Street Journal’s sources said.

Author: Dede Williams, Freelance Journalist