Aramco US refining unit moves into Texas chemicals business

Saudi Aramco is increasing its global footprint in the petrochemicals business. (Photo courtesy of Motiva.com)
Updated 21 August 2019
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Aramco US refining unit moves into Texas chemicals business

  • Saudi Aramco seeks to reduce its dependence on crude oil sales by developing new added value revenue streams

LONDON: Motiva Enterprises, the US refining unit of Saudi Aramco, has struck a deal to buy the Flint Hills Resources chemical plant in Texas.

The plant is located next to Motiva’s 630,000 barrels-a-day Port Arthur refinery — the largest in the US. The deal represents a significant move downstream by Motiva. 

“This marks the entry of Motiva into the chemical industry,” said Patrick Kirby, Wood Mackenzie principal analyst.

“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. The company has also expressed plans for further chemical developments at Port Arthur, including a world-scale steam cracker and aromatics facility.”

Saudi Aramco is increasing its global footprint in the petrochemicals business as it seeks to reduce its dependence on crude oil sales by developing new added value revenue streams. The world’s largest national oil company in March announced plans to acquire SABIC, the region’s largest petrochemical company, based in Riyadh.

Last week it also emerged that Saudi Aramco planned to acquire a 20 percent stake in the oil-to-chemicals business of India’s Reliance Industries.

Motiva did not disclose its plans for the Texas plant, but said that the potential acquisition was targeted to close in the fourth quarter of 2019.


Egyptian exchange suspends trading after EGX 100 plunges

Updated 22 September 2019
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Egyptian exchange suspends trading after EGX 100 plunges

  • It was the first time the exchange had suspended trading in the EGX 100 because of a 5 percent drop since 2016

CAIRO: Egypt’s stock exchange suspended trading for 30 minutes on Sunday after the EGX 100 index fell by 5 percent, bourse data showed.
Analysts linked the sharp drop in share prices to small protests that broke out in Cairo and other cities on Friday.
It was the first time the exchange had suspended trading in the EGX 100 because of a 5 percent drop since 2016.