Saudi Aramco’s US-based downstream subsidiary Motiva Enterprises is reportedly looking to invest $6.6bn in expanding its business by setting up petrochemicals plants.

Motiva, which operates a 603,000 barrel-a-day (b/d) plant in Texas state’s Port Arthur, has for months been rumoured to be vying to enter the petrochemicals business, although the company has not explicitly mentioned its plans.

Steam cracker

According to a local media report, documents filed with the Texas Comptroller’s office by Motiva, show that the Aramco subsidiary is evaluating a new $4.7bn steam cracker to produce ethylene, polyethylene and other petrochemicals.

Motiva is also considering building another $1.9bn plant that would produce benzene and paraxylene, as per the documents recently made public by the local administration.

Both projects would be complete by 2022 if the company decides to move forward with the investments and receives the necessary approvals, the local media report said.

In April, Motiva announced it had signed two memorandums of understanding (MoUs) with France’s TechnipFMC and the US’ Honeywell UOP. The MoUs, worth between $8bn and $10bn, relate to the study of petrochemicals production technology for use in chemicals plants.

Aramco decision

Parent company Aramco has yet to decide whether it would build the petrochemicals plants in Port Arthur or in other locations in Texas or Louisiana state, according to documents submitted to the Comptroller’s office.

A Motiva spokesperson was quoted in the report as saying that the company is "actively exploring several opportunities along the Gulf Coast".

"Final investment decisions by the Board of Directors are not expected to be made until the end of 2019 and are dependent on strong economics, competitive incentives and regulatory support," the spokesperson said.

The disaster caused by Hurricane Harvey in August 2017 along Texas’ Gulf of Mexico coastal areas is thought to have influenced Motiva’s decision to explore other locations in the US for its strategic petrochemicals venture than just its refinery site in Port Arthur, which is vulnerable to natural calamities.

If Aramco does decide to go ahead with the Motiva petrochemicals projects, the construction of the steam cracker would start in the first quarter of 2020, and work on the aromatics complex in the second quarter of 2020, according to the Comptroller documents.

Both projects would be completed in the fourth quarter of 2022.

In June, Motiva said it was no longer considering expanding its Port Arthur refinery, contradicting CEO Brian Coffman’s statement a few months earlier about the company looking to more than double the refinery’s output to 1.5 million b/d.

Motiva said it would instead focus on expanding its petrochemicals business and potentially purchasing another refining asset.