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Motiva signs $8-10bn MoUs with TechnipFMC, Honeywell for refining technologies

EBR Staff Writer Published 09 April 2018

Motiva Enterprises has signed $8-10bn worth memorandums of understanding (MOUs) with TechnipFMC and Honeywell UOP to study feasibility of using the two US-based firm’s technologies for potential petrochemical projects.

A downstream oil and gas subsidiary of Saudi Aramco, Motiva said that the projects if executed will bring in multi-billion-dollar investments in the US.

One of the MOUs signed by it is for assessing TechnipFMC’s mixed-feed ethylene production technologies in the US.

The second MOU is to investigate the use of the aromatics extraction and production technologies of Honeywell UOP for benzene and paraxylene for development of a potential petrochemical complex along the US Gulf Coast.

The two MOUs mark Motiva’s first step towards its move to expand into petrochemicals. Motiva revealed that it will not make any final investment decisions on the two US petrochemical projects until 2019 and that they will be subject to strong economics, competitive incentives, and support from relevant regulatory bodies.

The MOUs were signed during the official visit of Saudi Crown Prince Mohammed bin Salman to the US.

Saudi Aramco president & CEO Amin H. Nasser said: “We are especially honored for His Royal Highness to witness the signing of MoUs and announcements that further strengthens Aramco’s commitment to supporting U.S. economic growth and development through Downstream investments while also significantly investing in exploration and production technologies and innovative solutions aligned with Saudi Vision 2030 that will serve both our nations over the long term.”

Motiva, which is headquartered in Houston, Texas, is engaged in refining, distribution and marketing of petroleum products in the US. The Saudi Aramco subsidiary owns and operates a refinery in Port Arthur, Texas that has a crude capacity of 630,000 barrels a day in addition to a lubricant plant.

Motiva was originally a 50/50 joint venture between Saudi Aramco and Royal Dutch Shell for almost two decades. In March 2017, the two parties agreed to separate and transfer the assets, liabilities and businesses of the Motiva joint venture with Saudi Aramco retaining the name along with some of its assets.

Image: Signing of the MOUs by Motiva Enterprises. Photo: courtesy of Saudi Arabian Oil Co.