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 deal is expected to close in the fourth quarter of 2019.
The cracker has a capacity of around 700,000 tonnes/year for ethylene and around 300,000 tonnes/year for propylene. Cyclohexane unit there has a capacity around 250,000 tonnes/year.
Jeff Ramsey, president and CEO of Flint Hills Resources said that the Port Arthur facility is well-positioned, “especially as part of the Motiva organization, which has neighboring assets with strategic synergies and integration opportunities that will help the business remain competitive”.
Aramco, through its wholly owned subsidiaries, took ownership of Motiva’s refinery in Port Arthur following the completion of an asset separation with Shell.
Headquartered in Houston, Motiva refines, distributes and markets petroleum products throughout the US.
Flint Hills is a subsidiary of Koch Industries. The company acquired the Port Arthur facility in 2007 from Huntsman for $770m.