Big Story 10

Motiva to take ownership of Flint Hills chemical plant in November: sources

HOUSTON (Reuters) - Motiva Enterprises [MOTIV.UL] plans to take ownership of a Port Arthur, Texas, chemical plant from Flint Hills Resources in November, said sources familiar with the matter.

Motiva announced on Aug. 19 it would buy the chemical plant next door to its Port Arthur refinery from the Flint Hills Resources subsidiary of privately-held Koch Industries.

“The purchase agreement, which remains subject to regulatory approvals and various closing conditions, is anticipated to close by the end of 2019,” the company said in a statement on Tuesday.

Motiva, the U.S. refining arm of Saudi Aramco, plans to operate the chemical plant while it builds three giant petrochemical units within its Port Arthur complex as part of an $18 billion expansion of operations along the U.S. Gulf Coast, the sources said.

Ground is being prepared at three sites within the refinery for the petrochemical units, according to the sources. Motiva plans to make a final investment decision on building the three units by spring 2020.

Reporting by Erwin Seba; Editing by Tom Brown