Saudi Aramco signed agreements with Honeywell UOP and TechnipFM valued at $US8-10 billion for expanding chemical production and potentially building a complex along the U.S. Gulf coast.
State-oil giant Aramco signed a memorandum of understanding with TechnipFMC for its U.S. refinery unit Motiva Enterprises that will evaluate the use of its mixed-feed ethylene production technologies in the U.S, Saudi Aramco said in a statement.
A separate MoU with Honeywell UOP will assess the use of aromatics extraction and production technologies for benzene and paraxylene for development of a potential complex along the U.S. Gulf
Coast, Aramco said.
The MOUs are a first step in Motiva’s expansion into petrochemicals. Final investment decisions on these projects are not expected to be made until 2019 and are dependent on strong economics, competitive incentives, and regulatory support, Aramco said.
The signing in Houston was timed to coincide with the official visit to the United States by HRH Crown Prince Mohammed bin Salman of Saudi Arabia.
“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,” said Saudi Aramco President & CEO Amin H. Nasser.
“We are especially honoured for His Royal Highness to witness the signing of MoUs and announcements that further strengthens Aramco’s commitment to supporting U.S. 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.
The Crown Prince’s visit to Houston included a number of engagements and activities driven by Saudi Aramco, such as a tour of the company’s Houston R&D Centre where he was briefed on the latest upstream technology and innovation focusing on discovery and recovery of conventional and unconventional resources. It is the company’s largest research centre outside Saudi Arabia.