Motiva to Join US Chemical Industry
Motiva Enterprises LLC and an affiliate of Flint Hills Resources have signed an agreement for Motiva to acquire a 100-percent ownership interest in the Flint Hills Resources Port Arthur, LLC chemical plant, Motiva reported Monday.
According to information on Flint Hills’ website, the Port Arthur Chemical Plant produces ethylene, cyclochexane and polymer grade propylene. The Southeast Texas facility includes a 635,000 tonnes per annum (tpa) mixed feedstock steam cracker, a cyclohexane plant and associated storage and pipeline infrastructure, Patrick Kirby, principal analyst with Wood Mackenzie, noted in a written statement emailed Tuesday to Rigzone.
“This marks the entry of Motiva into the chemical industry,” said Kirby.
Kirby also stated the chemical assets are adjacent to Motiva’s wholly owned and operated Port Arthur refinery. Boasting a processing capacity of 635,000 barrels per day, the refinery is the largest such facility in the United States, he added.
“The steam cracker, which can handle a range of feedstocks – including ethane and those from the refinery – forms an integral part of the refinery,” said Kirby,
Motiva stated the potential transition is targeted to close in the fourth quarter of 2019 and hinges on satisfying closing conditions. In addition, the firm noted that neither it nor Flint Hills will disclose the terms of the transaction.
“It remains unclear as to what Motiva has planned post-acquisition, however some options could include strengthening refinery-chemicals integration, expansion of the asset capacity or potentially longer-term derivative plant development,” speculated Kirby. “The company has also expressed plans for further chemical developments at Port Arthur, including a world-scale steam cracker and aromatics facility.”
To contact the author, email firstname.lastname@example.org.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.