Motiva Enterprises has signed an agreement to acquire a 100% ownership interest in Flint Hills Resources Port Arthur.
The acquisition includes the chemical plant adjacent to Motiva's 635 kbpd Port Arthur oil refinery, which is the largest in the US.
The assets include a 635 ktpa mixed feedstock steam crackers, a cyclohexane plant and associated storage and pipeline infrastructure.
The deal should close in the fourth quarter of 2019.
Patrick Kirby, Wood Mackenzie principle analyst, says: 'This marks the entry of Motiva into the chemical industry.
'The steam cracker, which can handle a range of feedstocks – including ethane and those from the refinery – forms an integral part of the transaction. The steam cracker primarily produces ethylene and propylene for the merchant market.
'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.'
Vopak's smart Singapore tank terminalsWhat keeps Singaporean storage operators awake? Australia's LNG imports lead to storage questions Developing a sustainable terminal for the future Renewed EU strategy for the tank storage sector IMO 2020: it may be too late to invest Impact and opportunities of a decarbonised energy system A chemical gateway for Spain Capitalising on a niche storage opportunity The 12-year evolution of REACH