Motiva Enterprises, a US-based subsidiary of Saudi Aramco, has signed MOUs worth between $8bn to $10bn with Honeywell UOP and TechnipFMC. The MoUs are the firm’s first steps towards expanding into petrochemicals in the US.
According to a statement, the final investment decisions on the projects are expected in 2019 and are dependent on strong economics, competitive incentives and regulatory support.
“For more than 85 years the Kingdom of Saudi Arabia and the United States have enjoyed a mutually beneficial relationship based upon the strong legacy and longstanding foundation established by the leaders of both nations. The presence of Crown Prince HRH Mohammed bin Salman today further advances that proud heritage, bolstering Saudi Aramco’s presence and partnerships with top American companies in the energy hub of Houston,” said Amin H Nasser, president & CEO of Saudi Aramco.
One of the MOUs allows Motiva to evaluate the use of TechnipFMC’s mixed-feed ethylene production technologies in the US, while the second MoU enables the firm to study the use of UOP’s aromatics extraction and production technologies for benzene and paraxylene. The latter could be used to develop a complex along the US Gulf Coast.
“We are especially honoured for His Royal Highness to witness the signing of MoUs and announcements that further strengthens Aramco’s commitment to supporting US 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,” he added.