Friday, April, 12, 2024 10:05:08

The investment will increase the refinery’s output yield and generate around 4,300 construction jobs

Motiva Enterprises LLC, a subsidiary of Saudi Arabia’s state-owned oil company Saudi Aramco, has recently announced plans to invest around $6.6 billion in its Port Arthur refinery, to enhance its petrochemical business.

Sources close to the matter state that the company plans to buy a new $4.7 billion worth steam cracker to produce ethylene, used to produce polyethylene, and other petrochemicals. Moreover, Motiva considers building a $1.9 billion complex that would produce paraxylene and benzene, cite sources.

Reportedly, the two projects would be complete by 2022, based on the firm’s decision to move forward with the investments and procure required permits. The project is expected to create thousands of new construction jobs and boost the nation’s largest oil refinery in the petrochemical sector.

Incidentally, the project comes at a time when several new petrochemical projects are rolling out on the Gulf Coast, with refineries looking to diversify their businesses to meet the growing demand for motor fuels in the next couple of decades.

According to Angela Goodwin, spokesperson, Motiva, the company is actively seeking opportunities along the Gulf Coast. She said that the final investment decisions by the Board of Directors might take place after 2019 and is reliant on strong investments, competitive incentives, and regulatory support.

Reliable sources cite that the petrochemical project, on full capacity, would generate 4,300 construction jobs and would support around 255 permanent jobs with an average annual salary of about $80,000.

For the record, in April 2018, Aramco signed MoUs worth $8 billion-$10 billion with Technip FMC and Honeywell UOP to identify petrochemical production technology for an upcoming Port Arthur chemical project. Further, In June, Motiva said that it would focus on growing its petrochemical business and potentially acquiring other oil refineries.